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01-16-01 agendaCITY OF RICHFIELD, MINNESOTA HOUSING AND` REDEVELOPMENT AUTHORITY TUESDAY, JANUARY 16, 2001 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7 P.M. AGENDA Call to order 1. Consideration of election of HRA officers for 2001 Staff Report No. 1 Notes: • 2. Approval of minutes of Regular HRA Meeting of December 18, 2000 3. Opportunity for citizens to address the HRA on items not on the agenda Notes: 4. HRA approval of agenda 5. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once-the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval A. Consideration of approval of designating Steven L. Devich, Administrative Services `~ Director, as HRA Acting Executive Directorfor 2001 S.R. No. 2 B. Consideration of approval of resolutions designating HRA official depositories for 2001 S.R. No. 3 C. Consideration of approval designating Richfield Sun-Current as HRA official newspaper for 2001 S.R. No: 4 D. Consideration of approval of Department of Housing and Urban Development's proposed payment standards, effective February 1, 2001 S.R. No. 5 E. Consideration of approval of motion ratifying staff action for settlement of condemnation proceedings pertaining to property at 7621 Lyndale Avenue S.R. No. 6 F. Consideration of approval of motion ratifying staff action for settlement of condemnation proceedings pertaining to property at 7601 Lyndale Avenue S.R No. 7 G. Consideration of approval resolution authorizing issuance of Certificates of Completion..to John.B. Mahoney.Construction.anc._.for761.3, 7,619 and 7623_Nicollet Avenue; Karla K. Dagnault for 7532 Girard Avenue; and Spencer Dahl Construction, Peter C. Brandt and Lisa M. Bystedt for 6901-12th Avenue S.R. No. 8 H. Consideration of approval of execution of contract with Julianne Schwietz for Community Apartment Program beginning February 1, 2001 for 12 months. S.R. No. 9 I. Consideration of approval of request for 75-day extension for removal of closing contingencies from CSM Investors II, Inc. and modify schedule for public improvements, Lyndale Gateway development S.R. No, 10 J. Consideration of approval of resolution modifying redevelopment plan for Richfield Redevelopment Project Area and modifying tax increment financing plans for Gramercy tax increment financing district, Urban Village tax increment financing district, Richfield Rediscovered 1999 tax increment financing district, A-5 tax increment financing district, and B-5 tax increment financing district S.R. No. 11 Notes: 6. Consideration of resolutions regarding second amendment to contract for private redevelopment and issuance of limited revenue tax increment notes related to Gramercy Park Cooperative at Lake Shore Drive Staff Report No. 12 Notes: 7. Consideration of issuance of Certificate of Completion for Gramercy Park Cooperative at Lake Shore Drive Staff Report No. 13 • Notes: 8. Cancellation of public hearing on Business Subsidy Agreement for City Bella project; project update provided Staff Report No. 14 Notes: 9. Consideration of issuance of Certificate. of .Completion.~or Urb- anrVillage-(also known as -: Woodlake Centre) in accordance with contract for private redevelopment between HRA and Richfield State Agency, Inc. Staff Report No. 1,5 - Notes: 10. Consideration of resolution recognizing termination of assessment agreement for Richfield Medical Clinic project Staff Report No. 16 Notes: 11. Executive Director -report Notes: 12. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861-9702. • AGENDA ITEM # 10 REPORT # 16 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 BRUCE NORDQUIST, REPORT PREPARED BY: HOUSING & REDEVELOPMENT MANAGER NMI', TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR ACTING DEPARTMENT DIRECTOR REVIEW: 1' REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the termination of an Assessment Agreement with Richfield State Agency for the 1993 Richfield Medical Clinic project. I. RECOMMENDED ACTION: By Motion: Adopt a resolution recognizing the termination of an Assessment Agreement for the Richfield Medical Clinic project. III. BACKGROUND I The Housing and Redevelopment Authority (HRA) and Richfield State Agency (RSA) entered into a Contract for Private Redevelopment in 1993. The Medical Clinic addition at 66th Street and Grand Avenue resulted from that agreement. The Assessment Agreement that was part of the contract determined the value for property tax purposes, that the HRA would use as the basis for tax increment cash flow from the project. RSA has requested the termination of the agreement. HRA's legal counsel and the HRA's financial consultant have determined that the agreement can be terminated. 0116Richfield-State III. BASIS OF RECOMMENDATION A. POLICY The HRA and RSA have a Contract for Private Redevelopment and Assessment Agreement that determines the amount of HRA financial assistance. The Assessment Agreement, by its terms, terminates on the date on which the HRA is no longer entitled to receive tax increment from the project. This date has occurred. RSA has requested that the HRA take formal action given the date has occurred. B. CRITICAL ISSUES None. The HRA's legal counsel and financial consultants have reviewed the matter and recommended the proposed action. C. FINANCIAL • The HRA's financial consultant, Ehlers, has determined that the date has occurred after which the HRA will no longer receive tax increment from the project. D. LEGAL The HRA's legal. counsel has reviewed the contract and agreement documents and prepared the required resolution. IV. ALTERNATIVE RECOMMENDATION(S~ N/A ~ V. ATTACHMENTS ~ Resolution Exhibit A, Legal Description. VI. PRINCIPAL PARTIES EXPECTED AT MEETING N/A HRA RESOLUTION NO. RESOLUTION RECOGNIZING TERMINATION OF ASSESSMENT AGREEMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a Minnesota public body corporate and politic, (the "Authority") and Richfield State Agency, a Minnesota corporation (the "Redeveloper") did on February 15, 1994, enter into that certain document entitled Assessment Agreement and Assessor's Certification (the "Assessment Agreement"); and WHEREAS, the Assessment Agreement covers lands now legally described in the attached Exhibit A; and WHEREAS, the Assessment Agreement was made pursuant to the requirements of an agreement between the parties dated December 20, 1993 entitled Contract far Private Redevelopment; and WHEREAS, the Assessment Agreement .provided by its terms that it terminates on the date on which the Authority is no longer entitled to receive tax increment from the district; and WHEREAS, the Authority has been informed by its fiscal consultant that date has passed; and WHEREAS, the Redeveloper has requested that the Authority take formal action to terminate the Assessment Agreement. NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the city of Richfield Minnesota that the Assessment be and is hereby terminated and is of no further force and effect as to any valuation date form and after December 31, 2000. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of January, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • 0116Richfield-State Exhibit A • Legal Description (January 16, 2001) Formerly: (February 15, 1994) Lots 1, 2 and 3, Block 1, Richfield Bank Addition, and Lots 24 and 25, Block 4 Lyndale Shores on Woodlake, Hennepin County. Presently: That part of Lot 2, Block 1, Richfield Urban Village, according to .the recorded plat, thereof, Hennepin County, Minnesota, which lies easterly of a line drawn perpendicular to the north line of said Lot 2 from a point on the north line of said Lot 2, distant 126.70 feet west from the northeast corner of said Lot 2, Hennepin County. L~ AGENDA ITEM # REPORT # 15 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING .TANUARY 16, 2001 • BRUCE NORDQUIST, HOUSING AND REPORT PREPARED BY: REDEVELOPMENT MANAGER NAME, TITLE BRUCE NORDQUIST, HOUSING AND REPORT PRESENTER: REDEVELOPMENT MANAGER NAME', TITLE ACTING DEPARTMENT DIRECTOR REVIEW: ''~ NATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Issuance of a Certificate of Completion for Urban Village (also known as Woodlake Centre). RECOMMENDED ACTION: By Motion: Authorize the issuance of a Certificate of Completion for Richfield Urban Village according to the plat thereof and in accordance with the Contract for Private Redevelopment between the Housing and Redevelopment Authority and Richfield State Agency,. Inc. • III. BACKGROUND ~ Richfield State Agency, Inc. (RSA) the developer of the Urban Village has completed the project elements: The Oaks on Pleasant consists of 138 rental townhomes and apartment flats that replaced 14 single-family homes; • The Pines refers to the 78 unit assisted .living building for seniors which was completed recently and is more than 50 percent occupied; and Woodlake Centre refers to the 90,000 sq. ft. of office/commercial/retail space and the 650 car parking facility. 0116UrbanVillage The buildings have been completed and only tenant improvements are still being installed. The November 16, 1998 Contract for Private Redevelopment between RSA and the Housing and Redevelopment Authority (HRA) requires a Completion • Certificate in a recordable form once construction is completed. In this instance, the certificate is also needed by RSA's lender to close on the financing for the project. Inspections and Community Development staff have issued the Certificate of Occupancy with a short list of miscellaneous items that require attention related to landscaping and exterior finishes. (Staff work orders are- attached.) There are no life-safety issues that need to be addressed and the project is essentially complete. III. BASIS OF RECOMMENDATION A. POLICY The HRA has a Contract for Private Redevelopment that requires a response and action by the HRA when requested by the developer. The HRA cannot unreasonably withhold a Certificate of Completion. $. CRITICAL ISSUES It would not be appropriate to issue a Certificate of Completion prior to completion of work. The project is essentially done with minor items related to landscaping and finishing. underway and agreed to by the developer. The developer has also posted $5,000 security. to cover the cost of items to be left until spring. There is no disagreement with the developer about what still needs to be done. • C. FINANCIAL The Contract for Private Redevelopment requires the HRA to respond to requests of the developer and lender in support of arranging project financing. This request has been made by the developer. D. LEGAL The Certificate of Completion has been drafted in proper form by the HRA's legal counsel ALTERNATIVE RECOMMENDATION(S) ~ Delay approval of the Certificate of Completion. However, staff believes the remaining items are being promptly dealt with, are of a relatively minor nature. V ATTACHMENTS I • Attachment A; Certificate of Completion • Attachment B; Staff Work Orders VI. PRINCIPAL PARTIES EXPECTED AT MEETING ~ • CERTIFICATE OF COMPLETION The undersigned hereby certifies that RICHFIELD STATE AGENCY, INC., a Minnesota corporation, has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", dated November 16, 1998, between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and RICHFIELD STATE AGENCY, INC., a Minnesota corporation, with respect to construction of the Minimum Improvements located on the tract of land described in the attached Exhibit A in accordance with the requirements of such document and is released and forever discharged from its obligations to construct the Minimum Improvements under such above reference Article on the above referenced tract. DATED: January 16, 2001 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD gy Its Chairperson By Its Executive Director STATE OF MINNESOTA ) COUNTY OF ss. The foregoing instrument was acknowledged before me this day of . 2001, by , it Chairperson and by the Executive Director. of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under Minnesota law, on behalf of such public body. Notary Public This document drafted by: Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (JBD) • EXHIBIT A Legal Description (Urban Village, also known as Woodlake Centre, The Oaks, and The Pines) Lot 1, 2 and 3, Block 1, RICHFIELD URBAN VILLAGE (WOODLAKE CENTRE) Lot 1, Block 2, RICHFIELD URBAN VILLAGE (The Pines) Lot 1, Block 3, RICHFIELD RUBAN VILLAGE (The Oaks) Outlots A, B, C and D, RICHFIELD URBAN VILLAGE ~1 • EXHIBIT B URBAN VILLAGE STAFF WORK ORDERS • Completion of landscaping irrigation at 66th Street island. • Modify sidewalk width at 67th Street; 5 ft. to become 6 ft. • .Relocate hydrant adjacent to sidewalk. • Install knockdown bollards at 67th Street and Grand Avenue intersection. • Replace miscellaneous cracked concrete and restore railway property edges disturbed by construction. • Finalize 67th Street and alleyway maintenance- agreement. • Replace landscaping material that does not survive one year. • Complete installation of benches, bike racks, trash receptacles. • Provide summary of security plan. • Review installation of transit curb cut and east/west sidewalk at The Pines during summer, 2001. • - BRUCE NORDQUIST, HOUSING AND REPORT PREPARED BY: REDEVELOPMENT MANAGER NAME, TITLE BRUCE NORDQUIST, HOUSING AND REPORT PRESENTER: REDEVELOPMENT MANAGER NAn~', TITLE ACTING DEPARTMENT DIRECTOR REVIEW: `'J SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Cancellation of a public hearing- on a Business. Subsidy Agreement for the City Bella project. Project update will be provided. L RECOMMENDED ACTION: , By Motion: Cancel the public hearing on a Business Subsidy Agreement for the City Bella project scheduled for Tuesday, January 16, 2001. ~ II. BACKGROUND ~ A public hearing was scheduled for the November 2000 Housing and Redevelopment Authority (HRA) meeting to consider the role and amount of public financial assistance for the City Bella project. The approved mixed use project will incur traditional acquisition, relocation, demolition, and public infrastructure costs usually associated with redevelopment projects. Tax increment will be considered by the HRA. ~, However, the developer's determination of costs and resources may be 30 to 60 days away. The November public hearing was continued to the December and January HRA meetings while Gramercy Corporation (Gramercy) modified and settled on a final design. The developer contacted staff in January to again delay 0116CancelBusSub consideration on the financial aspects until. cost estimates can be completed based on the final design. Staff will monitor the developer's progress and schedule the public hearing at the appropriate time. Adjacent property owners will be notified of the revised schedule when it is determined. This delay does not impact the project except for the timing of property acquisition and a construction start. This time.will be used by staff to create the City Bella tax increment district. The developer will use the time to work with HUD and other lenders on permanent project financing and the affordability element. One of the unintended impacts of a project delay is the acquisition of Lyndale Hardware. Gramercy did not act on the option to purchase at the end of December. This has caused great concern for John Sieff, owner of Lyndale Hardware. The resulting issues of timing and financial compensation and the options available are being discussed by the parties. At this staff report writing, they are still a distance apart. III. BASIS OF RECOMMENDATION A. POLICY The HRA and Gramercy have a Contract for Private Redevelopment. The request for additional time is reasonable. Project progress continues to be made. The HRA may only consider business subsidy for the project with a public hearing. B. CRITICAL ISSUES The delay and project timing may impact affected parties. Additional costs may be incurred during the- interim. C. FINANCIAL Ehlers is working- with the developer to determine the amount of business subsidy and tax increment financing assistance required. The developer's lenders and the HRA need. the most accurate cost estimates possible to properly size the financial resources. HRA costs incurred are covered by the developer. D. LEGAL A formal action to hold or cancel the scheduled and announced public hearing is required of the HRA. The agreement between the HRA and Gramercy is based on a Contract for Private Redevelopment. • IV. ALTERNATIVE RECOMMENDATION~S~ Take certain actions based on the status of negotiations between Gramercy and Lyndale Hardware. However, both of these parties have agreed that the month of January should be used to assess options and determine a revised course of action. V. ATTACHIVIENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mike Conlan, Gramercy Corporation. • • C • AGENDA ITEM # 7 REPORT # 13 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING & REDEVELOPMENT MANAGER NAME, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING 8L REDEVELOPMENT MANAGER NAME, Trr~ r_ ACTING DEPARTMENT DIRECTOR REVIEW: SI NA%'1/RlS REVIEWED BY EXECUTIVE DIRECTOR: .Z:2~~ ITEM FOR HRA CONSIDERATION: Issuance of a Certificate of Completion for Gramercy Park Cooperative at Lake Shore Drive. I. RECOMMENDED ACTION: By Motion: Authorize the issuance of a Certificate of Completion for Lot 1, Block 1, Gramercy Park, Richfield -the Gramercy Park Cooperative. III. BACKGROUND I The Housing and Redevelopment Authority (HRA) entered into a Contract for Private Redevelopment with Gramercy Corporation in July 1998. Gramercy recently completed the 160-unit. senior cooperative. The contract requires a Completion Certificate in a recordable form once construction is completed. In this instance, the certificate will also be needed by Gramercy's lender to close on the financing for the project. Inspections and Community Development staff have issued the Certificate of Occupancy with a short list of miscellaneous items that require attention related to landscaping and finishes and a security deposit to anticipate the potential for odor concerns at the VFW. Staff work orders are attached. There are no life-safety 0116GramercyPark issues that need to be addressed and the building is essentially complete. Parking continues to be a concern. The Community Services Commission is updating its parking policy at Wood Lake Nature Center to minimize concerns. City Bella interim and permanent parking is also being further evaluated to meet Gramercy's needs. III. BASIS OF RECOMMENDATION I A. POLICY • The HRA has a Contract for Private Redevelopment that requires a response and action by the HRA when requested by the developer. • The HRA cannot unreasonably withhold a Certificate of Completion. B. CRITICAL ISSUES • It would not be appropriate to issue a Certificate of Completion prior to the completion of work. • The project is essentially done, with minor items. related to landscaping and finishing underway and agreed to by the developer. C. FINANCIAL The Contract for Private Redevelopment requires the HRA to respond to requests of the developer and lender in support of arranging project financing. This request has been made by the developer. I~. I_,EGAL • The Certificate of Completion has been drafted in proper form by the HRA's legal counsel IV. ALTERNATIVE RECOMMENDATIONS} • Delay approval of the Certificate of Completion. However, staff believes the remaining items are being promptly dealt with and are of a relatively minor nature. V. ATTACHMENTS I • Attachment A, Certificate. of Completion • Attachment B, Staff work orders VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • ATTACHMENT A CERTIFICATE OF COMPLETION The undersigned hereby certifies that GRAMERCY PARK COOPERATIVE. at Lake Shore Drive, a Minnesota cooperative corporation, has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", dated July 20, 1998, between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and GRAMERCY PARK COOPERATIVE at Lake Shore Drive, as amended by the First Amendment thereto dated December 21, 1998 and the Second Amendment thereto dated , 2001 (collectively, the "Contract") with respect to: (I) acquisition of certain property and making payments therefor as required by Article III of the contract; and (ii) construction of the Minimum Improvements located on the tract of land described in the attached Exhibit A in accordance with the requirements of the Contract and is released and forever discharged from such obligations. DATED: January 16, 2001 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson 13y Its Executive Director STATE OF MINNESOTA ) COUNTY OF ss. The foregoing instrument was acknowledged before me this day of .2001, by , it Chairperson and by the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate-and politic under Minnesota law, on behalf of such public body. Notary Public • ATTACHMENT B • • Work Orders Gramercy Park Cooperative, Richfield • Submit performance bond for odor control system • Restore grass at Wood Lake Nature Center and Davis property • Repair street light wire • Submit payment for water meters • Staff continues to work on parking issues -long term needs to be met by City Bella development ~.J • AGENDA ITEM # REPORT # STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, -2001 6 12 BRUCE NORDQUIST, HOUSING AND REPORT PREPARED BY: REDEVELOPMENT MANAGER NAME, TITLE BRUCE NORDQUIST, HOUSING AND REPORT PRESENTER: REDEVELOPMENT MANAGER NAME, TITLE ACTING DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of Second Amendment to Contract for Private Redevelopment and the Issuance of Limited Revenue Tax Increment Notes related to Gramercy Park Cooperative at Lake Shore Drive. I. RECOMMENDED ACTION: By Motion: Approve. the HRA Resolutions for Gramercy Park Cooperative; approve a Second Amendment to Contract for Private Redevelopment; approve the sale of, and providing the form, terms, covenants and directions for, the issuance of limited revenue tax i rement notes, series 2001A and Series 2001 B. III. BACKGROUND ~ The Housing and Redevelopment Authority (HRA) entered into a Contract for Private Redevelopment with Gramercy in July, 1998, which was amended in December of that year. Under that agreement, Gramercy was entitled to a Tax Increment Financing (TIF) revenue note in the amount of $2,230,174 to be paid to Gramercy at 7.5% interest over 25 years. 0116Gramercy Gramercy has since discussed with John G. Kinnard & Company the possibility of assigning its rights to these payments to athird-party purchaser in exchange for up- front cash payment. It is not unusual for a developer to prefer a lump sum payment rather than a stream of payments over time, as this permits the use of cash for current operating or development purposes. In fact, Kinnard, and others, handle these types of transactions on a fairly regular basis and in a relatively large group of cities. Because there is no general obligation pledge behind the TIF note, athird-party purchaser will require more security and incentive to take the note than the original developer can expect to receive. As the development is already complete, the HRA has little or no reason to provide these and is not being asked to do so here. Instead, Gramercy is requesting that the HRA restructure the current note in a way that makes it more marketable to a third party. Specifically, it is being proposed that the current note be split into two separate obligations. The Series 2001A Note will function much the same as the existing note to Gramercy, with payments on this note going directly to the third party purchaser. The Series 2001 B Note will act as security for the payments due to the third party purchaser, with the tax increment paid on the 2001 B -Note being used to establish a reserve fund that will help ensure timely payment of amounts due on the Series 2001A Note. In addition, a third party purchaser will require a higher interest rate than the 7.5% that Gramercy is earning on the existing note. For a number of reasons, Kinnard has been reluctant to approach potential third party purchasers until the. HRA has reviewed and approved the transaction. As a result, the final principal amount and interest rate on the new notes has not yet been established. The resolutions being presented to you permit these amounts to be established later, with two important conditions. To begin with, the HRA's total obligation cannot be increased. Furthermore, there is a cap. on the maximum interest rate that will be permitted, in order to ensure that the HRA is not committed to paying a commercially unreasonable amount of interest on these notes. While the HRA's total obligation will not be increased, there are changes to the existing contract that are being proposed to you after discussions with Sid Inman, the HRA's financial consultant. 1) An assessment agreement will be entered into establishing a minimum market value for the property of $24,000,000. (Hennepin County has confirmed this value for property tax purposes.) This will help provide additional security for the note. Like most agreements of this type which are of a standard form, the obligations it creates are on the developer, not on the HRA. 2) The proposed City Bella project will be removed from the Gramercy TIF District and put in a new TIF district. The HRA is committing 75% of the TIF generated by the Gramercy Park project to payment on the Gramercy notes. (The remaining 25% is for the HRA's Housing Account and Administration.) Under the current note, there are specific maximum dollar amounts that will be paid to Gramercy on each February 1 and August 1. The source of those payments remains the same percentage of tax increment that was originally envisioned, and the HRA's obligation is still solely to make payments out of tax increment. III. BASIS OF RECOMMENDATION A. POLICY • A Contract for Private Redevelopment between the HRA and Gramercy is the basis for policy decisions. • Modifications to the contract and related tax increment notes are required to facilitate permanent financing for the.completed project. B. CRITICAL ISSUES • Ensure that modifying the terms and requirements for the project will not increase obligations for the HRA. The HRA's total obligation will not be increased. C. FINANCIAL • The recommended actions are based on a review by the HRA financial consultant, Sid Inman of Ehlers. D. LEGAL • The attached documents have been prepared by the HRA's legal counsel. IV. ALTERNATIVE RECOMMENDATION(S~ • The HRA can choose not to modify the contract and limited revenue tax increment notes. However, this would impair the developer's ability to finalize the permanent financing for this project. V. ATTAC~IMENTS • Attachment A; Second Amendment to Contract for Private Redevelopment. • Attachment 6; Resolution for the Issuance of a Limited Revenue Tax Increment Note, Series 2001A and Amendment to Contract • Attachment C; Resolution for the Issuance of a Limited Revenue Tax Increment Note, Series 2001 B. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Dan Greensweig, Kennedy & Graven • Sid Inman, Ehlers • Mike Conlan, Gramercy Corporation • ATTACHMENT A • SECOND .AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT THIS AMENDMENT, made and entered into as of the day of . , 2001 by and between GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a Minnesota Cooperative Corporation ("Redeveloper") and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a Minnesota public body corporate and politic ("HRA"). WITNESSETH: WHEREAS, the HRA and the Redeveloper .did on July 20, :1998 execute and. deliver that certain document entitled Contract for Private Redevelopment, which has subsequently been amended by that First Amendment to Contract for Private Redevelopment dated December 21, 1998 (such Contract and: Amendment. collectively referred to herein as the "Contract"); and L • NOW THEREFORE, based upon the mutual covenants and undertakings of the parties, the Contract is hereby amended as follows: NOW, THEREFORE, in consideration of the mutual covenants and obligations herein contained, the Contract is hereby amended in the following respects. l . A definition of "Maturity Date" in Section 1.1 is added to read as follows: WHEREAS, the Redeveloper wishes to assign certain payments of tax increment pursuant to the Contract and in order to do so desires to enter into an agreement .concerning the payment and security therefor; and WHEREAS, the Redeveloper has proposed that the. tax increment note originally proposed to be issued pursuant to the Contract be xeplaced by two tax. increment notes, such replacement notes to be assigned to third-party purchasers; and WHEREAS, the HRA has reviewed the proposed amendments, has received the reports and recommendations of its staff and consultants, and has concluded that the proposed amendments are necessary and appropriate and in furtherance of the proposed Redevelopment. "Maturity Date" means .the earlier of: (i) the date when the Redeveloper has been fully reimbursed according to the. terms of the Note; or (ii) February 1, 2026. , DJG-187194v4 RC125-223 1 • 2. The definition of "Note" in Section 1.1 is amended to read as follows: "Note" means, collectively, the Series 2001 A Note and the. Series 2001 B Note. 3. Three new definitions are added to Section 1.1 to read as follows: "Series 2001A Note" means the HRA's Limited Revenue. Tax Increment, Series 2001A to be executed and delivered in the form set forth on Exhibit A, pursuant to Section 3.6. "Series 2001B Note" means HRA's Limited Revenue Tax Increment Note, Series 2001B to be executed and delivered in the form set forth on Exhibit A, pursuant to Section 3.6. 4. Section 3.6(c) is amended read as follows: Section 3.6. Purchase Price. (a) The HRA shall pay the Redeveloper as purchase price for Parcel A the aggregate principal amount contained in the .Note. Payment of the Purchase Price will be made entirely and exclusively in accordance with the terms of said Note. .The Note is to be executed by the .HRA and delivered to Redeveloper upon the Redeveloper's request. Prior to or simultaneously with the HRA's delivery of the Note, the HRA shall deliver to Redeveloper the Certificate of Completion. • (b) The purchase price to be paid by the Redeveloper for the reconveyance of the Parcel A and conveyance of Parcels B and C from the HRA shall be $1.00. 5. Section 5.1 is amended to read as follows: Section 5.1. Insurance. (a) The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements an All Risk Broad Form Basis Insurance Policy and, from time to time during that period, at the request of the City, furnish the City with proof of payment of premiums on policies covering the following: (i) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value Basis," in an amount equal to one hundred - percent (100%) of the insurable value of the Minimum Improvements at the date of completion, and with coverage available in nonreporting form on the so-called "all risk" form of policy. • (ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Protective Liability Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the DJG-187194v4 2 RC125-223 • above-required limits, an umbrella excess liability policy may be used); and (iii) Workers' compensation insurance, with. statutory coverage. (b) Upon completion of construction of the Minimum Improvements and prior to the "Maturity Date" (as defined in the Note), the Redeveloper shall maintain, or cause to be maintained, at its cost. and expense, and from time to time at the request of the HRA shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the .Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. (ii) Comprehensive general public liability insurance, including. personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence. and for each year of $1,000,000. • • (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Redeveloper, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure; provided that the Redeveloper may be self-insured with respect to all or any part of its liability for workers' compensation. (c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance .companies selected by the Redeveloper. which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the HRA policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force. and effect. Unless. otherwise provided in this Article V of this Agreement, each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the Redeveloper and the HRA at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the HRA a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) The Redeveloper agrees to notify the HRA immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum D7G-187194v4 3 RC125-223 Improvements or any portion thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair, reconstruct and restore the Minimum Improvements to substantially the same. or an improved condition or value as it existed prior to the event causing such damage. and, to the extent necessary to accomplish such repair, reconstruction and. restoration, the Redeveloper will apply the Net Proceeds of any insurance relating to such damage .received by the Redeveloper to the payment or reimbursement of the costs thereof. The .Redeveloper shall complete the repair, reconstruction and restoration of the Minimum Improvements, whether or not the Net Proceeds of .insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion of such repairs, construction and restoration shall be the property of the Redeveloper. • (e) In lieu of its obligations under paragraph (d), Redeveloper may pay to the HRA the amount necessary to pay: the outstanding principal amount of and accrued interest the Note, as determined by the HRA's financial advisor. Upon the HRA's receipt of such payment, (i) the .HRA shall forthwith .pay such outstanding principal of and accrued interest on the Note and (ii) this Agreement `will be deemed .terminated and neither party will have any further liability hereunder, except as set forth herein. 6. Anew Section 6.3 and a new Section 6.4 are added that read as follows: Section 6.3. Reduction of Taxes. The Redeveloper agrees that prior to the Maturity Date: (1) it will not seek administrative review or judicial review of the applicability of any tax statute determined by any Tax Official to be applicable to the Minimum Improvements, the Redevelopment Property, or the Redeveloper or raise the inapplicability of any such tax statute as a defense in any proceedings, .including delinquent tax .proceedings; (2) it will not seek administrative review or judicial review of the constitutionality of .any tax statute determined by any Tax Official to be applicable to the Minimum Improvements, the Redevelopment Property or the Redeveloper or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (3) it will not cause a reduction in the Minimum Market Value (as defined in Section 6.4) paid in respect of the Redevelopment Property through: (A) willful destruction of the Minimum Improvements, or any part thereof; (B) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as provided in Section 5.1(e) of this Agreement; (C) a request to the assessor to reduce the Minimum Market Value of all or any portion of the Redevelopment Property; (D) a petition to the board of equalization of the County to reduce the Minimum Market Value of all or any portion of the Redevelopment Property; (E) a petition to the board of equalization of the State or the Commissioner of Revenue of the State to reduce the Minimum Market Value of all or any portion of the Redevelopment Property; (F) an action in a district court of the State or the tax court of the State pursuant to Minnesota Statutes, Chapter 278, seeking a reduction in the Minimum DJG-187194v4 4 RC125-223 s • 7. Market Value of the Redevelopment Property; (G) an application to the Commissioner of Revenue of the State requesting an abatement of real property taxes pursuant to Minnesota Statutes, Chapter 270; (H) any other .proceedings, whether administrative, legal or equitable, with any administrative body within the County or the State or with any court of the State or the federal government; or (n a transfer of the Redevelopment Property, or any part thereof, to an entity exempt from the payment of real property taxes-under State law. The Redeveloper shall not, prior to the Maturity Date, apply for a defer al or abatement of property tax. on the Redevelopment Property pursuant to any law, regulation, or ordinance. Section 6.4. Assessment Agreement. (a) Prior ,to or concurrently with issuance of the Note, the Redeveloper shall, with the HRA execute an Assessment Agreement pursuant to Minnesota Statutes, Section 469.177, subd. 8, specifying an assessor's minimum market value (the ''Minimum Market Value") for the Redevelopment Property, and .all improvements. thereon. The amount of the Minimum Market .Value for the Redevelopment Property .and .Minimum Improvements .shall be $24,000,000 as of January 2, 2001 notwithstanding the progress of construction of the Minimum Improvements by such date. (b) The Assessment Agreement shall be substantially in the form attached hereto as Exhibit D. Nothing in the Assessment Agreement shall limit the. discretion of the assessor to assign a market value to the property in excess of the Minimum Market Value. The Assessment Agreement shall remain in force until the Maturity Date. A new Section 8.3(e) is added to read as follows: (e) Notwithstanding anything to the contrary herein, and in accordance with the Consent to Assignment of Note and Release and Indemnity .between the HRA and the Redeveloper dated , 2000 (the "Consent"), the HRA and the Redeveloper agree that the Redeveloper may, at its discretion, assign the Note to one or more .third-party purchasers (the "Assignees"). The HRA shall have no obligation to obtain such third-party purchasers. The Authority further agrees that upon written notice to the Authority from the Redeveloper and any and all Assignees designated pursuant to the Consent, the Authority shall, from the date of receipt of such notice until the Maturity Date, pay to the Redeveloper any remaining payments due under the Note. 8. Anew Section 8.3(f) is added to read as follows: (f) As a condition precedent to the assignment of the Note by the Redeveloper pursuant to Section 8.3(e), the Redeveloper shall execute and deliver or cause to be executed and delivered to the HRA all documents deemed necessary or desirable by the HRA to effectuate such assignment, including but not limited to an investment letter in substantially the form set forth at Exhibit E hereto... DJG-187194v4 5 RC125-223 • 9. Anew Section 8.3(g) is added to read as follows: (g) In addition to any other indemnification to which the HRA is entitled under this Agreement, the Redeveloper releases from and agrees that it will defend, indemnify, protect, and hold harmless the HRA, the City, and the governing body members, servants, .officers, agents, employees, and representatives thereof from any claim, demand, suit, action or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from any assignment of the Note pursuant to Section 8.3(e), whether such claim, demand, suit, action, or other proceeding arising from an actual alleged violation of any federal or state. securities or investment law, -rule, or regulation or otherwise. Nothing in this Agreement is intended to waive any limitation on or immunity from liability to which the HRA or the City is entitled, under Minnesota Statutes, Chapter 466 or otherwise. 10. The. Exhibits are amended to read as set forth at Schedule A to this Second Amendment. 11. Except as specifically amended herein, the Contract remains unaltered and in full force and effect. 12. The HRA may record this Second Amendment in the public land records in and for Hennepin County, Minnesota. The Redeveloper shall pay all costs for recording. DJG-187194v4 6 RC125-223 IN WITNESS WHEREOF, the parties hereto have set their hands and seals as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA By: Its: By: Its: GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE By: Its: STATE OF MINNESOTA ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2001, by and the Chairperson and Executive Director of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. Notary Public STATE OF MINNESOTA ) )SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before. me this day of , 2001, by the of , a cooperative corporation under the laws of Minnesota, by and on behalf of said corporation. Notary Public DJG-187194v4 '] RC125-223 SCHEDULE A DJG-187194v4 A_ 1 RC125-223 INSERT NOTES HERE EXHIBIT A DJG-187194v4 A-A-1 RC125-223 EXHIBIT B Certificate of Completion here EXHIBIT C Legal Description of Gramercy development here EXHIBIT D ASSESSMENT AGREEMENT THIS AGREEMENT, made on or as of the day of , 2001, between GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a- Minnesota Cooperative Corporation ("Redeveloper") and THE HOUSING AND. REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a Minnesota public body corporate and politic ("HRA"). WITNESSETH, that WHEREAS, the HRA and Redeveloper did on July 20, 1998 execute and deliver that certain document entitled Contract for Private Redevelopment, which has subsequently been amended by that First Amendment to Contract for Private Redevelopment dated December 21, 1998 and that Second Amendment to Contract for Private Redevelopment dated 2001 (such Contract and Amendments collectively referred to herein as the "Contract"); and WHEREAS, pursuant to the Contract the Redeveloper is obligated. to construct, or has constructed, certain improvements upon the .Redevelopment Property (the "Minimum Improvements"); and WHEREAS, the HRA and the Developer desire to establish a minimum market value for the Redevelopment Property and the Improvements constructed thereon, pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and WHEREAS, .the HRA and the Assessor ,for Hennepin County (the "Assessor") have reviewed the plans and specifications for the Improvements; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the Redevelopment Property described in Exhibit A, together with the Improvements thereon,. for ad valorem tax purposes, shall be $24,000,000 as of January 2, 2001, notwithstanding the progress of construction of the Improvements by such date. 2. The minimum market value herein established shall be of no further force and effect and this Agreement shall terminate on the Maturity Date (as defined in the Contract) . 3. This Agreement shall be promptly recorded by the HRA. The Redeveloper shall pay all costs of recording. DJG-187194v4 A-D-1 RC125-223 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract. _ 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 6. Each of the parties has authority to enter into this Agreement and to take all actions required of it, and has taken all actions necessary to authorize the execution and delivery of this Agreement. 7. In the event any provision of this Agreement hall be held invalid and unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may. reasonably be required for correcting any :inadequate, or incorrect, or amended description of the Redevelopment Property, or for carrying out the expressed intention of this Agreement, including, without. limitation, any further instruments required to delete from the description of the Redevelopment Property such part or parts as may be included within a separate assessment agreement. 9. Except as .provided in Section 8 of this Agreement, this Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original -and all of which shall constitute but one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. • DJG-187194v4 A-D-2 RC125-223 THE HOUSING AND REDEVELOPMENT `AUTHORITY OF THE CITY OF RICHFIELD, MINNESOTA By: Its: By: Its: GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE By: Its: STATE OF MINNESOTA ) SS COUNTY OF ) The foregoing instrument was acknowledged .before me this day of 2001, by and ,the Chairperson and Executive Director of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. Notary Public STATE OF MINNESOTA )SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 2001, by the of , a cooperative corporation under the laws of Minnesota, by and on behalf of said corporation. Notary Public DJG-187194v4 A-D-3 RC125-223 EXHIBIT A TO ASSESSMENT AGREEMENT NEED LEGAL DESCRIPTION DJG-187194v4 RC125-223 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the. land upon which the improvements are to be constructed, hereby certifies as follows: The undersigned Assessor,.being legally responsible for the assessment of the above described property, hereby certifies that the .values assigned to the land and improvements are reasonable. County Assessor for the County of Hennepin • • STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN - The foregoing instrument was acknowledged before me this _ day of by ,.the County Assessor of the County of Hennepin. .Notary Public DJG-187194v4 RC125-223 -. EXHIBIT E INVESTMENT LETTER Gramercy Park Cooperative Housing and Redevelopment Authority in and at Lake Shore Drive for the City of Richfield 7900 International Drive 6700 Portland Avenue So. Suite 210 Richfield, MN 55423 Bloomington, MN 55425 John G. Kinnard & Co. Fourth Floor 920 Second Avenue South Minneapolis, MN 55402 Dear Ladies and Gentlemen: In connection with our purchase of the $ ` Housing and Redevelopment Authority in and for the City of Richfield ("HRA") Limited Revenue Tax Increment Note, Series 2001A and the $ Housing and Redevelopment Authority in and for the City of Richfield ("HRA") Limited Revenue Tax Increment Note, Series 2001B (collectively, the "Note"), issued to Gramercy.Park. Cooperative at Lake Shore Drive ("Gramercy") and .assigned by Gramercy to the undersigned, we confirm that: 1. We have .received a copy of the Private Placement Memorandum, dated 2001, relating to the Note and such other information as we deem necessary in order to make our investment decision. 2. We are an "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or. (7) of Regulation D under the Securities Act of 1933, as amended (the "Securities Act")) purchasing for our own account and- not as a nominee or agent; and not with a view to the resale or .distribution of any part thereof, 3. We have no present intention of selling, granting any participation in, or otherwise distributing the Note. 4. We have .such knowledge and experience in financial and business matters as tb be capable of evaluating the merits and risks of our investment in the Note, and we are able to bear the economic risk of our investment. 5. In making our decision to acquire the Note, we have relied upon independent investigations made by us and, to the extent we believed to be appropriate, by our representatives, including our own professional, tax and other advisors, and we have not relied nJC-is~i9a~a A-E-1 RC125-223 upon any representation or warranty. from the HRA or Gramercy, or any of their respective officers, employees, agents, affiliates or representatives, with respect to the value of the Note. 6. Neither the HRA nor Gramercy .has made any warranty, acknowledgment or covenant, in writing or otherwise, to the undersigned regarding the tax .consequences, if any, of the acquisition and investment in the Note. 7. The undersigned or its representatives have been. given a full opportunity to examine all documents and to ask questions of, and to receive answers from, the HRA and Gramercy and their representatives concerning the terms of the Note and such other information. as the undersigned desires in order to evaluate the acquisition of and investment in the Note, and all such questions have been answered to the full satisfaction of the undersigned. 8. The undersigned has evaluated the merits and risks of investment in the Note and has determined that the Note is a suitable investment for the us in light of our overall financial condition and prospects. 9. We understand that the offer. and sale of the Note has not been registered under the Securities Act, and that the Note may not be offered or sold except as described below.. We agree and each subsequent holder of the Note by its acceptance thereof will agree, not to offer, sell or otherwise transfer the Note, except (A) to Gramercy, (B) in accordance with Rule 144A under the Securities Act to a "qualified institutional buyer" (as defined therein), (C) to an "accredited investor" (as defined above) that is purchasing for his own account or for the account of such an "accredited investor," (D) pursuant to the exemptions from registration provided by Rule 144 under the Securities Act, if available, (E) pursuant to an effective registration statement under the Securities Act, or (F) pursuant to any other available exemption from the .registration requirements of the Securities Act, subject in each of the foregoing cases to any requirement of law that the disposition of our property or the property of such investor account or accounts be at all times within our or their control and to compliance with applicable state securitieslaws. We further agree to provide to any person purchasing the Note from us a notice advising such .purchaser that resale of the Note is restricted as stated herein. 10. No market for this Note exists and no market for the Note is intended.. to be developed. 1 L We understand that payments on the Note are subject to certain restrictions and conditions set forth in the Contract for Private Redevelopment between the HRA and Gramercy ("Redeveloper") dated July 20, 1998 dated July 20, 1998, as amended by the First Amendment thereto dated December 21, 1998 and the Second Amendment thereto dated , 2001 (the Contract and the Amendments thereto are collectively referred to herein as the "Contract"), a resolution approved by the HRA on , 2001 (the "Resolution"), and an Escrow ..Agreement between Gramercy, ,and the undersigned dated 2001 ("Escrow Agreement"). 12. We understand that Available Tax Increment as defined in the Contract and the Note, together with a portion of the proceeds of the Note, are the sole source of money that is pledged and will be available for the payments due under the Note; that neither the HRA, the D7G-187194v4 RC125-223 A-E-2 Redeveloper, .nor Gramercy has any obligation to repurchase the Note from us under any circumstances; that the Note is not a general obligation of the HRA; and that, if Available Tax Increment is not sufficient to make the payments due under the Note in full, no right will exist to have taxes levied by the HRA or the City of Richfield for the payment of the unpaid amounts due . under the Note. 13. We agree to purchase the Note .when and as issued, on , 2001 or such other date as agreed among the parties. Each of you are entitled to rely upon this letter and are irrevocably authorizedto produce this letter or a copy .hereof to any' interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. DJG-187194v4 A-E-3 RC125-223 (Name of Purchaser) By: Name: Title: _ Address: bated as of : , 2001 DJG-187194v4 .dl-$-4 RC125-223 ._ ATTACHMENT B THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR • THE CITY OF RICHFIELD RESOLUTION NO. RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS LIMITED REVENUE TAX INCREMENT NOTE, SERIES 2001A; APPROVING AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BE IT RESOLVED BY the Board of .Commissioners ("Board") of the Housing and Redevelopment Authority in and for the City of Richfield (the "Authority") as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The Authority and City of Richfield ("City") have heretofore approved the establishment of Gramercy Redevelopment Tax Increment District (the "TIF ~~ District") within Richfield Redevelopment Project Area (Project ), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and • sell its bonds for the purpose of financing a portion of the public development costs of the Project. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its Limited Revenue Tax Increment Note, Series 2001B (the "Note"), in the maximum principal amount. of $ ,for the purpose of financing certain public costs of the Project. 1.02. Approval of Documents Issuance Sale, and _Terms of the Note. The Note is issued in accordance with that certain Contract for Private Redevelopment between the Authority and Gramercy Park Cooperative at Lake Shore Drive, a Minnesota Cooperative Corporation ("Redeveloper") dated July 20, 1998, as amended by the First Amendment thereto dated December 21, 1998 ("First Amendment") and the .Second Amendment thereto dated 2001 ("Second Amendment") (the Contract and the Amendments thereto are collectively referred to herein as the "Agreement"). The Authority hereby authorizes issuance of the Note in accordance with terms set forth in this resolution to the Redeveloper, at a price of par.. The Note shall be dated as of the date of delivery thereof and shall bear interest at the rate of per annum to the earlier of maturity or prepayment. The Note shall be payable in semi- annual installments of principal and interest on each February 1 and August 1 commencing February 1, 2001 and continuing through February 1, 2026 (the."Payment Dates"). -- The Note, together with the Authority's Limited Revenue Tax Increment Note, Series 2001B (the "Series 2001B Note") is issued as replacement for the Authority's $2,230,174. Limited Revenue Tax Increment Note issued pursuant to the First Amendment (the "Prior. DJG-187176v6 1 RC125-223 Note"), and the Redeveloper shall return the Prior Note to the Authority as a condition precedent to delivery of the Note. The principal amount and interest rate of .the Note shall be as requested by the Owner in writing prior to the issuance of the Note, provided that: (a) in no case shall the combined principal amounts of the Note and the Series 2001B Note exceed $2,230,174; (b) in no case shall the sum of the present value of the maximum amounts of principal and interest payable on-the Note and the present value of the maximum amounts of principal and interest payable on the 2001B Note exceed the present value of the maximum amount of principal and interest that would have been payable on the Prior Note; and (c) in no case shall the principal amount of the Note exceed $2,056,000 or the interest rate on the Note exceed 9.75%. The Authority's Executive Director is directed to .complete the Note in accordance with the provisions of this paragraph and is further directed to deliver a certificate attesting to the calculation of the principal amount and interest rate of the Note in accordance with the terms of this Resolution. The Authority hereby further approves and authorizes and directs the Authority's Chair and Executive Director to execute and deliver as appropriate: (i) the Second Amendment; (ii) the Certificate of Completion attached as Exhibit B to the Contract; and (iii) the Assessment Agreement attached as Exhibit D to the: Contract. 1.03. Optional Prepayment. The Authority. may prepay the Note in whole or in part without premium or penalty at any time at the option of the Authority. Section 2. Form of Note. The Note shall be in substantially the following .form, with the blanks to be properly filled in as of the date of issue: UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN ` THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CTfY OF RICHFIELD LIMITED REVENUE TAX INCREMENT NOTE, 2001A The Housing and Redevelopment Authority in and for the City of Richfield (the "Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Gramercy Park Cooperative at Lake Shore Drive or its permitted assigns (the "Owner"), to the extent and in the manner hereinafter provided, the original principal amount of this Note, being $ (the "Principal Amount"), together with interest thereon accrued from the date of this Note,. at tYle rate of interest of % per annum (the "Stated Rate"), payable on each February 1 and August 1 commencing February 1, 2001 and continuing through February 1, 2026. (the "Payment Dates"). DJG-187176v6 2 RC125-223 Any payments on this Note shall be applied first to accrued interest and then to the Principal • Amount in respect of which such payment is made. Each payment on this Note is payable in any. coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed. to the Owner at it postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority to aid in financing a "project," as defined in .Minnesota Statutes, Section 469.174, of the Authority within and. for the .benefit of the :Gramercy Redevelopment Tax Increment District ("District"). THE NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF RICHFIELD, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF RICHFIELD, THE STATE NOR. ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS .DEFINED BELOW. Payments on this Note are payable solely from proceeds of this Note and from and only to the extent that the Authority .shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means: Seventy-five Percent (75%) of the tax increment received from the real estate described in Exhibit C to the Agreement (the "Redevelopment Property") for years beginning with 2001 and ending in 2026. To the extent that on any Payment Date the Authority does not have on hand. sufficient Available Tax Increment to make the .scheduled payment (which insufficiency is not due to a ' failure of the Owner to pay full real estate taxes payable on the Redevelopment Property), such deficiency shall be deferred and paid to the extent possible on the next Payment Date on which the Authority has received Available Tax Increment. sufficient to do so. This Note shall terminate upon the "Maturity Date", hereby defined as the earlier of: (i) the date when the- Redeveloper has been fully reimbursed according to the terms hereof; or (ii) February 1, 2026. This Note may be prepaid in full at anytime at the option of the Authority. This Note shall .also terminate and the Authority's obligation to make any payments under this Note shall be discharged and the Authority shall have no obligation and incur no liability to make any payments hereunder immediately upon the occurrence of an Event of Default under the Contract. for Private Development, dated July 20, 1998, as amended by .the First Amendment thereto dated December 21, 1998 and the Second Amendment thereto dated , 2001 (the Contract and the Amendments thereto are collectively referred to herein as the "Development Contract") between the Authority and the Owner, subject to the notice and .cure provisions of Section 9.2 thereof. This Note shall not be payable from or constitute a charge upon any funds of the Authority or the City of Richfield and the Authority shall not be subject to any liability hereon or be deemed DJG-187176v6 3 RC125-223 L' • to have obligated itself to pay hereon from any funds except the Available Tax Increments, and then only to the extent and in the manner herein specified. The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Richfield or of any other public body, and neither the Authority or the City of Richfield- nor any director, commissioner, council member, board member, officer, employee or agent of the. Authority or the City of Richfield, nor any person executing` or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferred to any person without the prior written consent of the Authority. TT IS HEREBY CERTIFIED AND RECITED that, except as provided in the Development Contract, any acts, conditions, .and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and-due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the Authority or the City of Richfield outstanding. on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Richfield to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Commissioners of the Authority has .caused this Note to be executed by the manual signatures of the Chairperson and the Executive Director of the. Authority and has caused this Note to be dated , 2001. Chairperson Executive Director DJG-187176v6 4 RC125-223 U AUTHENTICATION AND REGISTRATION PROVISIONS This is one of the Notes described in the within mentioned Resolution.. The ownership of the unpaid balance of the within Note is registered in the bond register of the City Clerk- Treasurer, in the name of the person last listed below. Date of Registration Registered Owner Signature of Registrar Name Tax LD. No: Section 3. Terms Execution and Delivery. 3.01. Denomination. Payment. The Note shall be issued as one or more typewritten notes numbered from R-1 upwards. The Note shall be issuable only in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates Interest Pavment Dates. Principal of .and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the City's. Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Re ig ster. The Registrar shall keep at its office a bond .register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Except as provided in the Development Contract, the Note shall not be transferred to any person without the prior written consent of the Authority. (c) Cancellation. The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in - whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on DJG-187176v6 $ RC125-223 account of, the principal of and interest on such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid. and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. (f) Taxes Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to such transfer or exchange. (g) Mutilated Lost Stolen or Destroved Note.. In case any. Note shall .become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory. to it, in which both the Authority and the Registrar shall be named as obligees. The Note so surrendered to the Registrar shall be .cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. (h) Prepayment. In the event the Note is prepaid in whole or in part, notice thereof will be given by the Registrar by mailing a copy of the redemption notice by first class. mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of the Note at the address shown on the registration books kept by the Registrar. Failure to give notice by mail to any registered owner, any defect therein, will not affect the validity of any proceeding for the redemption of the Note. The Note so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the Secretary and shall be executed on behalf of the Authority by the signatures of its Chair and Secretary. In case any officer whose signature shall appear on the Note shall cease to be such. .officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, the Note shall not be valid or obligatory for any purpose or entitled. to any security or benefit under this resolution unless and until a certificate of authentication on such Note has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Notes certificates need not be signed by the same representative. The executed certificate of authentication on each Note shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Note has been so executed and authenticated, it shall be delivered by the Secretary to the .Owner upon DJG-187176v6 6 RC125-223 • payment of the purchase price therefor, and the Owner shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. ' r 4.01. Pledge. The Authority hereby pledges to the payment of the principal of and interest on the Note all Available Tax Increment as defined in the Note. Available Tax Increment shall be deposited in the Debt Service Fund in accordance with Section 4.02 hereof and applied to payment of the principal of and interest on the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Debt Service Fund. So long as the Note is outstanding and any principal thereof or interest thereon remains unpaid, the Authority shall maintain a separate Limited Revenue Tax Increment Note Series 2001A Debt Service Fund (the "Debt Service Fund") to be used for no purpose other than the payment of the principal of and interest on the Note. .The Authority appropriates and irrevocably pledges to the .Debt Service Fund: (a) Available Tax Increment pledged pursuant to Section 4.01 of this Resolution; (b) all investment earnings on funds held in the Debt Service Fund; .and (c) any other funds appropriated to the Debt Service Fund. The Debt Service Fund and all moneys deposited therein pursuant to this Resolution are hereby pledged to the payment of principal of and interest on the Note. 4.02. Investment of Funds. All amounts held in the Debt Service Fund will be invested in accordance with the provisions of Minnesota Statutes, Chapter 118A, governing the investment of funds of governmental entities. ' Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare -and furnish to the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Continuing Disclosure. The continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934 (the "Rule") do not apply to the Note, because the offering is exempt from such requirements under Section 15c2-12(d)(1)(i). Consequently, the Authority will not enter into any undertaking to provide continuing disclosure of any kind with respect to the Note. Section 7. Amendment to Contract and Other Documentation Apuroved. The Authority approves the Second Amendment and the Escrow Agreement by and among the Authority, .the Redeveloper, and ,dated , 2001, and the Estoppel Certificate pertaining to the Redeveloper's obligations under the Agreement, all in the form on file in City Hall and with such modifications that are consistent with the terms of this Resolution as are approved by the DJG-187176v6 '] RC125-223 Chairperson and Secretary, whose execution of the document will be conclusive evidence of their aPProval. Section 8. Effective Date. This resolution shall be effective upon full execution of the Second Amendment. DJG-187176v6 RC125-223 Adopted this day of ,.2001. Chairperson ATTEST: Secretary • • DJG-187176v6 C) RC125-223 ATTACHMENT C • THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD RESOLUTION NO. RESOLUTION AWARDING .THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS .AND DIRECTIONS FOR THE ISSUANCE. OF ITS LIMITED REVENUE TAX INCREMENT NOTE, SERIES 2001B BE IT RESOLVED BY the Board of Commissioners ("Board") of the Housing and Redevelopment Authority in and for the City of Richfield (the "Authority") as follows: Section 1. Authorization; Award of Sale. • 1.01. Authorization. The. Authority and City of Richfield ("City") have heretofore approved the .establishment of Gramercy Redevelopment ..Tax Increment District (the "TIF District") within Richfield Redevelopment Project Area ("Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvements within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Project. Such bonds are payable from all or any portion of revenues derived .from the TIF District and pledged to the payment of the bonds. The Authority hereby finds. and determines that it is in the best interests of the Authority that it issue and sell its Limited Revenue Tax Increment Note, Series 2001B (the "Note"), in the maximum principal amount of $ ,for the purpose of financing certain public costs of the Project. The Note, together with the Authority's Limited Revenue Tax Increment Note, Series 2001A (the "Series 2001A Note") is issued as replacement for the Authority's .$2,230,174 Limited Revenue Tax Increment Note .issued pursuant to the First Amendment (the "Prior Note"), and the Redeveloper shall return the Prior Note to the Authority as a condition precedent to delivery of the Note. 1.02. Issuance Sale. and Terms of the Note. The Note is issued in accordance with that certain Contract for Private Redevelopment between the Authority and Gramercy Park Cooperative at Lake Shore Drive, a Minnesota Cooperative Corporation ("Redeveloper") dated July 20, 1998, as amended by the First Amendment thereto dated December 21, 1998 ("First Amendment") and the Second Amendment thereto dated 2001 ("Second Amendment") (the Contract and the Amendments thereto are collectively referred to herein as the "Agreement"). The Authority hereby authorizes issuance of the Note in accordance with terms set forth in this resolution to the Redeveloper, at a price of par. The Note shall be dated as of the date of delivery thereof and shall bear interest at the rate of °Io per annum to the earlier of maturity or prepayment. The Note shall be payable in semi-annual installments of principal and interest on each February 1 and August 1 commencing February 1, 2001 and continuing through February 1, 2026. (the "Payment Dates"). DJG-187245v5 1 RC125-223 • The principal amount and interest rate ofthe Note shall be as requested by the Owner in writing prior to the issuance of the Note, provided .that: (a) in no case. shall the combined principal amounts of the Note and the Series 2001A Note exceed $2,230,174; (b) in no case shall the sum of the present value of the maximum amounts of principal and interest payable on the Note and the present value of the maximum amounts of principal and interest payable on the 2001 A Note exceed the present. value of the maximum amount of principal and interest that would have been payable on the Prior Note; and (c) in no case shall the principal amount of the Note exceed $324,000 or the interest rate on the Note exceed 9.75%. The Authority's Executive Director is directed to complete the Note in accordance with the provisions of this paragraph and is further directed to deliver upon closing a certificate attesting to .the calculation of the principal amount and interest rate of the Note in accordance with the termsof this Resolution. 1.03. Optional Prenayment. The Authority may prepay the Note in whole or in part without premium or penalty at any time at the. option of the Authority. Section 2. Form of Note. The Note shall be in substantially the following form, with the blanks to be properly filled in as of the date of issue:_ UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN , THE HOUSING AND REDEVELOPMENT AUTHORITY IN .AND FOR THE CITY OF RICHFIELD LIMITED REVENUE TAX INCREMENT NOTE, 2001B The Housing and .Redevelopment Authority in and for the City of Richfield (the "Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Gramercy Park Cooperative at Lake Shore Drive or its permitted assigns (the."Owner"), to the extent and in the manner hereinafter provided, the original principal amount of this Note, being $ (the "Principal Amount"), together with interest thereon accrued from the date of this Note, at the rate of interest of °Io per annum (the "Stated Rate"), payable on each February 1 and August 1 commencing February 1, 2001 and continuing through February 1, 2026 (the "Payment Dates"). Any payments on this Note shall be applied first to accrued interest and then to the Principal Amount in respect. of which such payment is made. Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be .made by check or draft made payable to the Owner and mailed to the Owner at it postal address within the United States which shall be designated from time to time by the Owner. DJG-187245v5 2 RC125-223 The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued. by the Authority to aid in financing a "project," as defined in Minnesota Statutes, Section 469.174, of .the Authority within and for the .benefit of the Gramercy Redevelopment Tax Increment District ("District"). THE NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF RICHFIELD, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF RICHFIELD, THE STATE NOR ANY POLITICAL SUBDNISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAII,ABLE TAX INCREMENT, AS DEFINED BELOW. Payments on this Note are payable solely from proceeds of this Note and from and only to the extent that the Authority shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment means: Seventy-five Percent (75%) of the tax increment received from the real estate described in Exhibit C to the Agreement (the "Redevelopment Property") for years beginning with 2001 and ending in 2026. Payment on any Payment Date of the. principal and interest on this Note is expressly subject to and subordinate to the payment of any amounts due as of that Payment Date on the Authority's $ Limited Revenue Tax Increment Note, Series ZOOlA (the "Series 2001A Note"} and Available Tax Increment shall be applied first to amounts due on the Series 2001 A Note, and. second to amounts due on this Note. To the extent that on any Payment Date the Authority does not have on hand sufficient Available Tax Increment together with. capitalized interest to make the scheduled. payment (which insufficiency is not due to a failure of the Owner to pay full real estate taxes payable on the Redevelopment Property), such deficiency shall be deferred and paid to the extent possible on the next Payment Date on which the Authority has received Available Tax Increment sufficient to do so. This Note shall terminate upon the "Maturity Date", hereby defined as the earlier of: (i) the date.. when the Redeveloper has been fully reimbursed according to the terms hereof; or (ii) February 1, 2026.. This Note may be prepaid in full at any time at the option of the Authority. This Note shall also terminate and the Authority's obligation to make any payments under this Note shall be discharged and the Authority shall have no obligation and incur no liability to make any payments hereunder immediately upon the occurrence of an Event of Default under the Contract for Private Development, dated July 20, 1998, as amended by the First Amendment thereto dated December 21, 1998 and the Second Amendment thereto dated , .2001 (the Contract and the Amendments thereto are collectively referred to herein as the. "Development Contract") between the Authority and the Owner, subject to the notice and cure provisions of Section 9.2 thereof. This Note shall not be payable from or constitute a charge upon any funds of the Authority or the City of Richfield and the Authority shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increments, and then only to the extent and in the manner herein specified. DJG-187245v5 3 RC125-223 • • • The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Richfield or of any other public body, .and neither the Authority or the City of Richfield nor any director, commissioner, council member, board member, officer, employee or agent of the Authority or the City of Richfield, nor any person executing or registering this Note shall: be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferred to any personwithout the prior written consent ofthe Authority. IT IS HEREBY CERTIFIED AND RECITED that, except as provided iri the Development Contract, any acts, conditions, and things required by the Constitution .and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and: have been performed in regular and due form, time, and manner as required by law; and. that this ..Note, together with all other indebtedness of the Authority or the City of Richfield outstanding on the .date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Richfield to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Commissioners of the Authority has caused this Note to be executed by the manual signatures of the Chairperson and the Executive Director of the Authority and has caused this Note to be dated ,.2001. Chairperson Executive Director AUTHENTICATION AND REGISTRATION PROVISIONS i This is one of the Notes described in the within mentioned Resolution. The ownership of the unpaid balance of the within Note is registered in the bond register of the City Clerk- Treasurer, in the name of the person last listed below. Date of Registration Registered Owner Signature of Registrar Name Tax LD. No: Section 3. Terms Execution and Delivery. 3.01. Denomination. Pavment. The Note shall be issued as one or more typewritten notes numbered from R-1 upwards. The Note shall be issuable only. in fully registered form. Principal of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates- Interest Pavment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3.03. Registration. The Authority hereby appoints the City's. Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of ..registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: (a) Re ister. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Except as provided in the Development Contract, the Note shall not be transferred to any person without the prior written consent of the Authority. (c) Cancellation. The Note surrendered upon any transfer shall be .promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar. .for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no .liability .for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on DJG-187245v5 5 RC125-223 account of, the principal of and interest on such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the sum or sums so paid. • r (f) Taxes Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to~ be paid with respect to such transfer or exchange. (g) Mutilated Lost Stolen or Destroyed Note. In case any Note shall become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses. and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar. shall be named as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If themutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note shall be prepared under the direction, of the Secretary and shall be executed on behalf of the Authority by the signatures of its Chair and Secretary. In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. Notwithstanding such execution, the Note shall not be valid or obligatory for any purpose or entitled to any security or benefit under this resolution unless and until a certificate of authentication on such (h) Prepayment. In the event the Note is prepaid in whole or in part, notice thereof will be given by the Registrar by mailing a copy of the redemption notice by first class mail (postage prepaid) not more than 60 and not less than 30 days prior to the date fixed for redemption to the registered owner of the Note at the address shown on the registration books kept by the Registrar. Failure to give notice by mail to any registered owner, any defect therein, will not affect the validity of any proceeding for the redemption of the Note. The Note so called for redemption will cease to bear interest after the specified redemption date, provided that the funds for the redemption are on deposit with the place of payment at that time. Note has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Notes certificates need not be signed by the same representative. The executed certificate of authentication on each Note shall be conclusive evidence that it has been authenticated and delivered under this resolution. When the Note has been so executed and authenticated, it shall be delivered by the Secretary to the .Owner upon DJG-187245v5 RC125-223 payment of the purchase price therefor, and .the Owner shall not be obligated to see to the application of the purchase price. Section 4. SecuritYProvisions. 4.01. Pledge. The Authority hereby. pledges to the payment of the principal of and interest on the Note all Available Tax Increment as defined in the Note. Available Tax Increment shall be deposited in the Debt Service Fund in accordance with Section 4.02 hereof and applied to payment of the principal of and interest. on the Note in accordance with the terms of the form of Note -set forth in Section 2 of this resolution. 4.02. Debt Service Fund.. So long as the Note is outstanding and any principal thereof or interest thereon remains unpaid, the Authority shall maintain a separate Limited Revenue Tax Increment Note Series 2001B Debt Service Fund (the "Debt Service. Fund") to be used for no purpose other than the payment of the principal of and interest on the Note. The Authority appropriates and irrevocably pledges to the Debt Service Fund: (a) Available Tax Increment pledged pursuant to Section 4.01 of this Resolution; (b) all investment earnings on funds held in the Debt Service Fund;. and (c) any other funds appropriated to the Debt Service Fund... The Debt Service Fund and all moneys deposited therein pursuant to this Resolution are hereby pledged to the payment of principal of and interest on the Note. 4.02. Investment of Funds. All amounts held in the Debt Service Fund will be invested in accordance with the provisions of Minnesota Statutes, Chapter 118A, governing the investment of funds of governmental entities. ' Section 5. Certification of Proceedings. 5.01.. Certification of Proceedings. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies. of all proceedings and records of the Authority, and such other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified .copies, certificates, and affidavits, .including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein. Section 6. Continuing_Disclosure. The continuing disclosure requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange- Act of 1934 (the "Rule") do not apply to the Note, because the offering is exempt from such requirements under Section 15c2-12(d)(1)(i). Consequently, the Authority will not enter into any undertaking to provide continuing disclosure of any kind with respect to the Note. Section 7. Effective Date. This resolution shall be effective upon full execution of the Second Amendment. DJG-187245v5 '] RC125-223 • • Adopted this day of , 2001. Chairperson ATTEST: r AGENDA ITEM # 5J REPORT # 11 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 KATIA MEDVETSKI, REPORT PREPARED BY: REDEVELOPMENT SPECIALIST NAME, TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE ACTING DEPARTMENT DIRECTOR REVIEW: ~ , SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution modifying the Redevelopment Plan for the Richfield Redevelopment Project Area; Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District; Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District; Modification to the Tax Increment Financing Plan for the Richfield Rediscovered 1999 Tax Increment Financing District; Modification. to the Tax Increment Financing Plan for the Richfield Rediscovered A-5 Tax Increment Financing District; and Modification to the Tax Increment Financing Plan for the Richfield Rediscovered B-5 Tax Increment Financing District. I. RECOMMENDED ACTION: By Motion: Approve a resolution modifying the Redevelopment Plan for the Richfield Redevelopment Project Area; Modification to the Tax Increment Financing Plan for the Gramercy Tax Increment Financing District; Modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District; Modification to the Tax Increment Financing Plan for the Richfield Rediscovered 1999 Tax Increment Financing District; Modification to the Tax Increment Financing Plan for the Richfield Rediscovered A-5 Tax Increment Financing District; and Modification to the Tax Increment Financing 0116RRTifMod • Plan for the Richfield Rediscovered B-5 Tax Increment Financing District. III. BACKGROUND ~ On October 16, 2000, the Richfield Housing and Redevelopment Authority (HRA) approved a resolution for the above-referenced matter. The City Council public hearing held on November 27, 2000 was opened and continued to January 22, 2001 upon the. recommendation of legal counsel. Legal counsel is requesting that the Modification to the Tax Increment Financing Plan for Richfield Rediscovered ..1999 (the,"TIF Plan") be revised so as to clarify-the fact that not only were parcels being added to the acquisition list but that these same parcels will be part of the scattered-site Richfield Rediscovered 1999 Tax Increment Financing District (the "TIF District"), thus expanding the TIF District. In general, the Modification to the Richfield Rediscovered 1999 Tax Increment Financing District include additional parcels, allow for the use of interfund loans, geographically expand the district by adding 10 parcels, and recognize the possibility of future modifications to the Richfield Rediscovered 1999 District. The proposed Modification to the Gramercy Tax Increment Financing Plan and the Modification to the Urban Village Tax Increment Financing Plan include additional parcels of land to be acquired and allow for the use of interfund loans. The Modification to the A-5 Tax Increment Financing District and Modification to the B-5 Tax Increment Financing District include removal of some parcels from those districts. III. BASIS OF RECOMMENDATION A. POLICY • It is the City's policy to comply with the State of Minnesota's Tax Increment Financing Act and the administrative rules issued from time to time by the Office of State Auditor. B. CRITICAL ISSUES • Legal counsel has recommended that the HRA approve a resolution on the corrected TIF Plan for Richfield Rediscovered prior to the City Council's public hearing of January 22, 200.1. C. FINANCIAL • There are no additional fiscal and economic implications due to the Modifications to the Gramercy, Urban Village, Richfield Rediscovered 1999, A-5 and B-5 Tax Increment Financing Plans. • At the HRA's direction, staff has removed the references to the City Bella project from the proposed Modification to the Gramercy Tax Increment Financing Plan. City Bella is still .under concept development and will appear within-the context of a tax increment financing plan at a later date. . D. LEGAL All matters relating to the continuance of the public hearing and HRA's review and approval of a new resolution on this matter have been undertaken upon the recommendation and direction of legal counsel. IV. ALTERNATIVE RECO1ViMENDATION~S~ .Delay or not approve the proposed plan modifications at this time. However, this. will delay staff s ability to continue the momentum of Richfield Rediscovered and specifically, the purchase and sale of property under the proposed plan modifications. ~ V. ATTACHMENTS ~ Resolution Modified Tax Increment Financing Plans for Gramercy, Urban Village, Richfield Rediscovered, A-5 and B-5 Tax Increment Financing Districts. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • • HRA RESOLUTION NO. RESOLUTION MODIFYING THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA AND MODIFYING THE TAX INCREMENT FINANCING PLANS FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; THE RICHFIELD REDISCOVERED 1999-TAX INCREMENT FINANCING DISTRICT; THE A-5 TAX INCREMENT FINANCING DISTRICT; AND THE B-5 TAX INCREMENT FINANCING DISTRICT WHEREAS, it has been proposed that the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") adopt the Modification to the Redevelopment Plan for the Richfield Redevelopment Project Area, Modification to the Tax Increment Financing ("TIF") Plan for the Gramercy TIF District, Modification to the TIF Plan for the Urban Village TIF District, Modification to the TIF Plan for Richfield Rediscovered 1999 District; Modification to the TIF Plan for the A-5 District; and Modification to the TIF Plan for the B-5 District (collectively, the "Modifications"), all pursuant to and in conformity with existing law, including Minnesota Statutes, Sections 469.001. through 469.047, and Sections 469.174 to 469.179, inclusive, as amended, all as reflected in the Modifications and presented for the HRA's consideration; and WHEREAS, the HRA has investigated the facts relating to the Modifications and has caused the Modifications to be prepared; and WHEREAS, by Resolution No. 784 the HRA approved the Modifications, but the HRA has determined a need to clarify its prior action by expressly approvingthe expansion of the boundaries of the Richfield Rediscovered 1999 TIF District to add certain parcels. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield as follows: 1) The HRA hereby approves the modification to the Richfield Redevelopment Project Area Plan. 2) The HRA hereby approves the modification to the TIF plans for the Grammercy, Urban Village, Richfield Rediscovered 1999, A-5 and B-5 TIF Districts, as described in the Modifications. 3) .The HRA makes all the findings relating to the Redevelopment Plan and the TIF Districts that are set forth in the Modifications, which findings are incorporated herein by reference. 4) Conditioned upon the approval thereof by the City Council following its public hearing thereon, the Modifications, as presented to the HRA on this date, are hereby approved, established and adopted and shall be placed on file in the Community Development Department at the City of Richfield. 5) The geographic boundaries of the Richfield Rediscovered TIF District are expanded to add the parcels identified in the TIF Plan for that district; and the A-5 and B-5 TIF Districts are modified to remove the identified parcels from those districts for inclusion in the Richfield Rediscovered 1999 TIF District. The Redevelopment Project boundary and the boundaries of all the other referenced TIF District are not changed by this action. 6) City staff, the HRA's advisors and legal counsel are authorized and directed to proceed with the implementation of the Modifications upon approval of the Modifications by the City Council and for this purpose to negotiate, draft, prepare and present to the HRA for its consideration all further plans, resolutions, documents and contracts necessary for this purpose. Approval of the Plans does -not constitute. approval of any project or any Development Agreement with any developer. 7) Upon approval of the Plans by the City Council, the Executive Director is authorized to forward a copy of the Plans to the Hennepin County Director of Property Taxation, together with a request to certify the original tax capacity of the parcels added to the Richfield Rediscovered TIF District, and to remove the identified parcels from the A-5 and B-5 TIF Districts. Approved by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of January, 2001. • ATTEST: Michael Sandahl, Secretary Thomas Harms, Chair CJ Draft as of January 9, 2001 MODIFICATION TO THE REDEVELOPMENT PLAN FOR RICHFIELD REDEVELOPMENT PROJECT AREA; MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE GRAMERCY TAX INCREMENT FINANCING DISTRICT; MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT; MODIFICATIONS TO THE TAX INCREMENT FINANCING PLAN FOR THE A-5 TAX INCREMENT FINANCING DISTRICT; AND MODIFICATIONS TO THE TAX INCREMENT FINANCING PLAN FOR THE B-5 TAX INCREMENT FINANCING DISTRICT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT; CITY OF RICHFIELD HENNEPIN COUNTY STATE OF MINNESOTA EHLERS & ASSOCIATES INC Public Hearing: January 22, 2001 Adopted: Prepared by: EHLERS & ASSOCIATES, INC. 3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105 (651) 697-8500 fax: (651) 697-8555 www.ehlers-inc.com TABLE OF CONTENTS (for reference purposes only) MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD ...................................... . DEVELOPMENT PROJECT 1 ..... . RE ......................................... i d 1 on ......................... uct Intro MAP OF THE RICHFIELD REDEVELOPMENT PROJECT AREA ............................. 2 MODIFICATION TO THE TIF PLAN FOR THE GRAMERCY TIF DISTRICT ............. 3 Introduction....:...... .....:..............:. ........ ....... ....... 3 Property to be Acquired ............................:......:.....:..:...:... .. 3 Duration of the District ......................................................... 5 Municipal Approval and Public Purpose ........................................... 5 MAP OF THE GRAMERCY TIF DISTRICT .............................................. 8 MODIFICATION TO THE TIF PLAN FOR THE URBAN VII,LAGE TIF DISTRICT ....... 10 Introduction ................................................................. 10 Property to be Acquired ....................................................... 10 Sources of Funds ............................................................. 12 Municipal Approval and Public Purpose .......................................... 12 MAP OF THE URBAN VILLAGE TIF DISTRICT ........................................ 15 MODIFICATION TO THE TIF PLAN FOR THE RICHFIELD REDISCOVERED 1999 TIF DISTRICT .................................................................... 16 Introduction . 16 Legal Description of Property in Richfield Rediscovered 1999 ......................... 16 Property to be Acquired ....................................................... 18 Estimated Impact on Other Taxing Jurisdictions .................................... 20 ............. Municipal Approval and Public Purpose ••••••••••••••••••••••••••••• 20 MAP OF THE RICHFIELD REDISCOVERED 1999 TIF DISTRICT ......................... 22 SUBSTANDARD FINDINGS FOR THE RICHFIELD REDISCOVERED TIF DISTRICT ........ 23 MODIFICATION TO THE TIF PLAN FOR THE A-5 TIF DISTRICT ..................... 24 Statement of Objectives ....................................................... 24 Legal Description of Property in Tax Increment Financing District A-5 ................. 24 MODIFICATION TO THE TIF PLAN FOR THE B-5 TIF DISTRICT ..................... 25 Statement of Objectives ....................................................... 25 Legal Description of Property in Tax Increment Financing District B-5 .................. 25 MODIFICATION TO THE REDEVELOPMENT PLAN FOR THE RICHFIELD REDEVELOPMENT PROJECT AREA Introduction The following text represents a modification to the Redevelopment Plan for the Richfield Redevelopment Project Area. This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for the Richfield Redevelopment Project Area originally adopted by the Richfield City Council on June 14, 1993, and revised subsequently thereafter. Generally, the substantive changes in this plan modification include the following modifications, all in the Richfield Redevelopment Project Area: a. Modifying the parcels to be acquired with tax increment from the Gramercy Tax Increment Financing (TIF) District, Urban Village TIF District and Richfield Rediscovered 1999 TIF District; b. Modifying the sources of funds to include interfund loans in the Gramercy TIF District and Urban Village TIF District; c. Modifying Richfield Rediscovered 1999 by expanding the geographic area by adding 10 parcels; d. Modifying the Statement of Goals and Objectives and the Legal Description of Property for the A-5 TIF District and B-5 TIF District. For further information, a review of the Redevelopment Plan for Richfield Redevelopment Project Area, adopted July 16, 1990, is recommended. It is available in the Community Development Department of the City of Richfield. Other relevant information is contained m the Tax Increment Financing Plans for the Tax Increment Financing Districts located within the Richfield Redevelopment Project Area. • MAP OF THE RICHFIELD REDEVELOPMENT PROJECT AREA • • • 0 ~Z $ ru ~O ~, a a ~i = ~ ~ ~ ~ ~ s s ~ ~ ~ u ~ ~', W w ~ 3 ~ o Z ~ ~ ~ ~ n ~ _ ~ ~ ~ m v, rn ~~~~~~~~>° ~o~ ~ •a NLi- anvavrn~a o00 - ~u O ruv~ v 'c~ C Q "" G~][~~D ~^0~ D r~o~fxar Dole ° ~ C NL1~ NO1`JNYIODl9 ~~(~ ~ Q t~u- C C ~ ,Q Nl-L` Q~OO~ OOQ Nun ~ E F ~~~ CJOC~~7~ ~ ~ ~ c. 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The Gramercy TIF District is a redevelopment tax increment financing district located within the Richf eld Redevelopment Project Area. The Gramercy TIF Plan is being modified at this time to specifically: a. incorporate the list of 28 parcels for acquisition (the "Acquisition Parcels") from the Richfield Rediscovered 1999 Tax Increment Financing-Plan (the "RR 1999 TIF Plan"), originally approved by the Richfield City Council ("the Council") on October 11, 1999, and subsequently revised by Council on November 22, 1999; b. add 10 new parcels for acquisition (the "New Acquisition Parcels") to the Gramercy, Urban Village and RR 1999 TIF Districts; c. allow the use of Gramercy TIF District increment (the "Gramercy Increment") for eligible project costs on RR 1999 TIF Plan Acquisition Parcels and New Acquisition Parcels; d. recognize the possibility of future modifications to the RR 1999 TIF Plan and list of acquisition parcels and the need to simultaneously modify the Gramercy TIF Plan to continue to allow the use of Gramercy Increment to pay eligible project costs for the RR 1999 TIF Plan acquisition parcels; and e. allow interfund loans to pay eligible project costs for Gramercy TIF District activities prior to the receipt of Gramercy Increment. f. clarify the duration of the Gramercy TIF District. Property to be Acquired The Acquisition Parcels listed in the RR 1999 TIF Plan and New Acquisition Parcels, including all property and adjacent rights-of--way identified by the parcels, are listed for reference purposes and made part of the Gramercy TIF District's list of parcels proposed for acquisition in order that Gramercy Increment may be used to pay for eligible project costs for these parcels: Acquisition Parcels: Address Parcel Numbers 6220 Clinton Avenue 27-028-24-11-0001 6608 Stevens Avenue 27-028-24-42-0073 a s 6625 3`d Avenue 6637 5`'' Avenue 6800 Pillsbury Avenue 6744 Blaisdell Avenue 6833 Park Avenue 6833 Grand Avenue 7036 ls` Avenue 7241 2"d Avenue 7316 Clinton Avenue 7301 Ga~eld Avenue 7544 2"d Avenue 7333 Emerson Avenue 6928 14~' Avenue 6315 Newton Avenue 6310 Irving Avenue 6306 Irving Avenue 6320 Girard Avenue 6645 Knox Avenue 6800 Logan Avenue 6912 Penn Avenue 6933 Queen Avenue 6833 Penn Avenue 6929 Queen Avenue 6901 12~' Avenue 6945 Clinton Avenue 7615 Pillsbury Avenue 27-028-24-41-0084 27-028-24-41-0105 27-028-24-34-0016 27-028-24-31-0007 26-028-24-33-0086 27-028-24-33-0070 34-028-24-12-0015 34-028-24-13-0150 34-028-24-14-0086 34-028-24-23-0129 34-028-24-42-0104 33-028-24-13-0090 26-028-24-43-0069 28-028-24-22-0097 28-028-24-21-0075 28-028-24-21-0126 28-028-24-12-0033 28-028-24-31-0032 28-028-24-33-0001 29-028-24-44-0161 29-028-24-44-0170 28-028-24-33-0045 29-028-24-44-0171 26-028-24-43-0082 27-028-24-44-0108 34-028-24-34-0045 a New Acquisition Parcels: Address 6856 Park Avenue 1015 East 69"' Street 6616 Second Avenue 7232 Second Avenue Parcel Numbers 26-028-24-33-0103 26-028-24-34-0050 27-028-24-42-0064 34-028-24-13-0121 6620 Fifth Avenue 27-028-24-41-0028 6309 Bryant 28-028-24-11-0049 6440 Humboldt 28-028-24-24-0009 7517 Humboldt 33-028-24-42-0077 6919 Logan 28-028-24-34-0064 6600 Stevens 27-028-24-42-0070 It is the City's intention to acquire other parcels when necessary, at a later date, add such parcels to the list of acquisition parcels in the Gramercy TIF Plan, and finance the eligible project costs for the parcels with tax increment revenues after the appropriate plan modification. Duration of the District Pursuant to M.S., Section 469.175, Subd. 1, and Section 469.176, Subd. 1, the duration of the Gramercy District must be indicated within the Plan. Pursuant to M.S., Section 469.176, Subd. 1(b), the duration of the Gramercy District will be 25 years from the date of receipt of the first increment by the City or HRA. The date of receipt by the City of Richfield of the first tax increment will be approximately 2001. Thus, it is estimated that the Gramercy District, including any modifications of the Plan for subsequent phases or other changes, would terminate after 2026, or when the Plan is satisfied. The City or HRA does reserve the right to decertify the Gramercy District prior to the legally required date. Municipal Approval and Public Purpose The reasons and facts supporting the findings for the adoption of the Modifications to the Tax Increment Financing Plan for the Gramercy District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: 1. Finding that the Gramercy Tax Increment Financing District is a redevelopment district as defined in M.S , Section 469.174, Subd. 31 D(a) (1). The tax increment financing district remains a redevelopment district based on the findings made upon adoption of the original tax increment financing plan on June 22, 1998. The Gramercy District has plans to redevelop the area for residential and commercial/retail purposes. At least 70 percent of the area in the parcels in the Gramercy District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in the Gramercy District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix E). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the Gramercy District permitted by the Plan. The Council reaffirms its findings made upon adoption of the original tax incremerif financing plan on June 22, 1998. Those findings are as follows: The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the development proposed in this plan is a senior housing cooperative that meets the City's objectives for redevelopment. The HRA currently owns certain property within the VFW facility and the mixed-use commerciaUretail and housing component site area, but the cost of site and public improvements and acquisition of the other properties in the district by the developer makes the proposed development infeasible without City assistance. The developer of the senior housing cooperative and VFW facility has submitted a pro forma on file in City Hall demonstrating the need for the assistance, and the developer has certified to the City that financing for the project would not be available but for the tax increment assistance to be provided under this plan. The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of site and public improvements and acquiring the property adds to the total redevelopment cost. Since the late 1970's/early 1980's the HRA has intended to redevelop the subject site area. The majority of the area south of 66th Street and west of Lyndale Avenue has been identified for redevelopment since 1975. In the late 1970's the HRA purchased property which subsequently provided a site for the lake Shore Condominiums Since that time various proposals have been advanced for other portions of the area but none have moved beyond the conceptual stage. Historically, site development costs in this area have made development infeasible without tax increment assistance. Therefore, the City reasonably determines that no other development of any kind is anticipated on this site without substantially similar assistance being provided to the housing development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of the Gramercy Redevelopment Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in the Gramercy District, the total increased market value would be up to $50,335,744. The present value of the tax increment from the Gramercy District is estimated to be $12,110,673. It is the Council's finding that no development with a market value of greater than $38,225,071 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of ~' acquisition and public and site improvements in the general area of the Gramercy District (see the but/for analysis in the cashflow in Appendix C). 3. Finding that the Tax Increment Financing Plan for the Gramercy District conforms to the general plan for the redevelopment of the municipality as a whole. The Planning Commission found that the Plan conforms to the general development plan of the. City and approved the Plan on May 26, 1998. 4. Finding that the Tax Increment Financing Plan for the Gramercy District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. The Council reaffirms its findings made upon adoption of the original tax increment financing plan on June 22, 1998. Those findings are as follows: The project to be assisted by the Gramercy District will result in the renovation of substandard properties, increased tax base of the State, the addition of a high quality development to the City and provide certain housing components to the City which do not exist. Additional findings are set forth in the Authorizing Resolution of the City. MAP OF THE GRAMERCY TAX INCREMENT FINANCING DISTRICT • • • C ~z g tri r 0 z ~ ~ ~ ~ a ~ ~ ~ i ~ ~ ~ ~ ~~ Nut Mo~~~oNO~ a "' ~nvuva3~ anvav~ Qoc~ Nut Hilt ~0~ t1tLt Wtt H18t a ~t ~-~~O~uQ ~ QQ NOLflNW0019 •i~^Y/i NQIONNp019 Q LLJJ ~ ~t 66 Nlst ® ~ Hut 'Q II-it~ QO ~ wst C r.+ Hitt Nltt~ ~ t m N to~~ ooAr~ ~ 0 0 ~~ rrwrmw~ ~ ~ lava ~ N °ne~"n~ ~vmvo ~ C~ fi. ~ anvaNVUaod ~ ~ ~" anvaNVUUOd [p ~ D ~ "`~ ~` ~ -u- ~"~ ~ ~ NOllN1~ a ~_ Z NO11N10 g aac ~ C W adt~ ~ °' E ONL SN3A318 Q i8t fl. O JSt ~ ~~ '3~Vyg710~IN ~ 18GL'M9 ~ C 311V 1~1lODIN l'~IViS N1tlOML16M ~ H11lON111i3M ^ ~ 1NVb1rJ~d ~ 1NrS~l31d L~~ ONVtl~ o ~~ ~ ~~ ~ ~ ~jj ~~ 3nr~ut ~ 3nv~vaN~i °'" NOItl01r H~INC7V ''"'''"a ~ G 1Nraae '0H10° .,,~ ,nno, iHOdna ... W NOSB~ 1 o~Yw~+ao ~,x b' _ aavwod ~ tmaeYKr+ LL ~uewrw ~ oNtnui to ~~ o ~-~ o ~ ~~ ~~ ° °o o o N119Y Q Ot~+ N01M3N 1L~J,i ~~O Q ~3IS1C ~ '3AV NN3d v iAVNN3d ~~8 O NCO ~ `a, Y~tl ~ NYWY3H4 ~ Ai 8VY10111 NM NOldfl v «o~ 8 ,N3~NU- ~ JJ60NYt Naf1~N1 ~ 'NAYS~l31f ' ~_ NW16S~M 3 ~~~~~~~~~~~~~~~~=~~ s 5 • MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT Introduction The City of Richfield (the "City"), the Richfield Housing and Redevelopment Authority in and for the City of Richfield (the "HRA"), staff and consultants have prepared the following information to facilitate a modification to the Tax Increment Financing Plan for the Urban Village Tax Increment Financing District (the "Urban Village TIF Plan" and "Urban Village TIF District"). The Urban Village Tax Increment Financing District is a redevelopment tax increment financing district located within the Richfield Redevelopment Project Area. The Urban Village TIF Plan is being modified at this time to specifically: a. incorporate the list of 28 parcels for acquisition (the "Acquisition Parcels") from the Richfield Rediscovered 1999 Tax Increment Financing Plan (the "RR 1999 TIF Plan"), originally approved by the Richfield City Council ("the Council") on October 11, 1999, and subsequently revises by Council on November 22, 1999; b. add 10 new parcels for acquisition (the "New Acquisition Parcels") to the Gramercy, Urban Village ..and RR 1999. TIF Districts; c. allow the use ofUrban Village TIF District increment (the "Urban Village Increment") for eligible project costs on RR 1999 TIF Plan Acquisition Parcels and New Acquisition Parcels; and d. recognize the possibility of future modifications to the RR 1999 TIF Plan and list of acquisition parcels and the need to simultaneously modify the Urban Village TIF Plan to continue to allow the use of Urban Village Increment to pay eligible project costs for the RR 1999 TIF Plan acquisition parcels. Property to be Acquired The parcels to be acquired that are financed by tax increments from the Urban Village District are being modified to include the parcels listed below, including all property and adjacent rights-of--way identified by the parcels. Please seethe map on page 15 for further information on the location of the Urban Village District. Acquisition Parcels: Address 6220 Clinton Avenue 6608 Stevens Avenue 6625 3`a Avenue 6637 5~' Avenue Parcel Numbers 27-028-24-11-0001 27-028-24-42-0073 27-028-24-41-0084 27-028-24-41-0105 io • 6800 Pillsbury Avenue 6744 Blaisdell Avenue 6833 Park Avenue 6833 Grand Avenue 7036 15` Avenue 7241 2"d Avenue 7316 Clinton Avenue 7301 Garfield Avenue 7544 2nd Avenue 7333 Emerson Avenue 6928 14~' Avenue 6315 Newton Avenue 6310 Irving Avenue 6306 Irving Avenue 6320 Girard Avenue 6645 Knox Avenue 6800 Logan Avenue 6912 Penn Avenue 6933 Queen Avenue 6833 Penn Avenue 6929 Queen Avenue 6901 12d' Avenue 6945 Clinton Avenue 7615 Pillsbury Avenue New Acquisition Parcels: Address 6856 Park Avenue 1015 East 69"' Street 27-028-24-34-0016 27-028-24-31-0007 26-028-24-33-0086 27-028-24-33-0070 34-028-24-12-0015 34-028-24-13-0150 34-028-24-14-0086 34-028-24-23-0129 34-028-24-42-0104 33-028-24-13-0090 26-028-24-43-0069 28-028-24-22-0097 28-028-24-21-0075 28-028-24-21-0126 28-028-24-12-0033 28-028-24-31-0032 28-028-24-33-0001 29-028-24-44-0161 29-028-24-44-0170 28-028-24-33-0045 29-028-24-44-0171 26-028-24-43-0082 27=028-24-44-0108 34-028-24-34-0045 Parcel Numbers 26-028-24-33-0103 26-028-24-34-0050 ~i • • 6616 Second Avenue 27-028-24-42-0064 7232 Second Avenue 34-028-24-13-0121 6620 Fifth Avenue 27-028-24-41-0028_ 6309 Bryant 28-028-24-11-0049. 6440 Humboldt 28-028-24-24-0009 7517 Humboldt 33-028-24-42-0077 6919 Logan 28-028-24-34-0064 6600 Stevens 27-028-24-42-0070 It is the City's intention to acquire other parcels when necessary, at a later date, add such parcels to the list of acquisition parcels in the Urban Village TIF Plan, and finance the eligible project costs for the parcels with tax increment revenues after the appropriate plan modification. Sources of Funds Interfund loans from the City, HRA or other districts may be used to cover project expenses of the Urban Village Tax Increment Financing District. It is the City's intention to pay back these interfund loans with tax increment from the Urban Village Tax Increment Financing District. Munic~al Approval and Public Purpose The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Urban Village Tax Increment Financing District as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that Urban Village Tax Increment Financing District is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). The tax increment financing district remains a redevelopment district based on the findings made upon adoption of the original tax increment financing plan on November 23, 1998. Those findings are as follows: Urban Village Tax Increment Financing District consists of 21 parcels, with plans to redevelop the area for commercial purposes. At least 70 percent of the area in the parcels in Urban Village Tax Increment Financing District are occupied by buildings, streets, utilities, or other improvements and more than 50 percent of the buildings in Urban Village Tax Increment Financing District, not including outbuildings, are structurally substandard to a degree requiring substantial renovation or clearance (See Appendix F in the original plan). 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the to present value of the projected tax increments for the maximum duration of Urban Village Tax Increment Financing District permitted by the Plan. The Council reaffirms its findings made -upon adoption of the original tax increment financing plan on November 23, 1998. Those findings are as follows: The proposed development; in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future: This finding is supported by the fact that the redevelopment proposed in this plan meets the City's objectives for redevelopment. In order to facilitate the project, the developer must buy single family homes at a price higher than rental town house project will support. Further, since this is an urban setting, no land is available for parking. Therefore, the developer must build approximately 600 car parking ramp. Due to this high cost of redevelopment, this project is feasible only through assistance, in part, from tax increment financing. The developer was asked for and provided a letter as justification that he would not have gone forward without tax increment assistance (see attachment in Appendix G in the original plan). The increased market value of the site that could reasonable be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the TIF District permitted by the Plan: The City supported this finding on the grounds that the cost of constructing site improvements, a public ramp and utilities add to the total redevelopment cost. Historically, site and public improvements costs in this area have made redevelopment infeasible without tax increment assistance. Therefore, the City reasonably determines that no other redevelopment of any kind is anticipated on this site without substantially similar assistance being provided to the development. Accordingly, the increased market value anticipated without tax increment assistance is $0. A comparative analysis of estimated market values both with and without establishment of Urban Village Tax Increment Financing District and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in Urban Village Tax Increment Financing District, the total increased market value would be up to $21,828,175. The present value of tax increments from Urban Village Tax Increment Financing District is estimated to be $8,579,438. It is the Council's finding that no development with a market value of greater than $4,469,236 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition, public improvements, site improvements and public utilities in the general area of the Urban Village Tax Increment Financing District (see Cashflow in Appendix D in the original plan). 3. Finding that the Tax Increment Financing Plan for Urban Village Tax Increment Financing District conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on October 27, 1998. The Planning Commission found that the Plan conforms to the general development plan of the City. The Plan, as modified to reflect the revised development proposal, was reviewed by the Planning 13 Commission on November 27, 2000. The Planning Commission found that the Plan conforms to the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Urban Village Tax Increment Financing District will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of the Richfield Redevelopment Project Area by private enterprise. The Council reaffirms its findings made upon adoption of the original tax. increment financing plan on November 23, 1998. Those findings are as follows: The project to be assisted by Urban Village Tax Increment Financing District will result in increased employment in the City and the State of Minnesota, the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. Additional findings are set forth in the Authorizing Resolution of the City. 14 MAP OF THE URBAN VILLAGE TAX INCREMENT FINANCING DISTRICT • • 15 • • • °d' V 7 W a O W J W ~T i r~ J .: ~~~~~~~~ oe+~na r a-aNn~ ~1lJYd OM1fD1V0 fp VIVONV71HOd~ 1- aaE ~~ u~ ~ •3nr tano~a+ ~osMa Htaauu~a+u- aanecrwa jNYS1/31d QM1Rq 1312~N 073LitlW 3AV 3700MJi1 K]IH0~11 urowe ~~ ~adrw 1lIOIY3l1d Gl1VNp JA'109NfM~ flNUW~ 83MYI' XOMI NVOOI M/D1WN NOlN13ti tl3N10 '9AVNId3d 3 N33fl0 7 ~~, 3 Nvon~+s No,en ~ 1N3~~ fRiflaCl/M j ~nvs~xtnft d ~o~~~~ ~~ p ~ ~ ~ ~ ~ ~ Q= ~ W 0 z anv ava~o ~~ wz- No~wVOOie ~'- ~' ~ ~- '~ ~ Hl1l ' y wz- ,gyp ~ ~« td C "i°` d 'i3 ,~ d c ' snarxno~ ~ C Sava C~NDIMO r a,-raNVUtiod p. ~ G llOlTl(TJ auc p. C ~ o ~ s7nn~.s ls~ ~, H ~~ ~ ~ -uaoNU~a+u ~anes~xd 'O ~NVSr~id d a-iwo ~ 'e IBMNVN _ GlilddMD ' '8IWi1WNA1 lk~IM01r 1lIVJIMY XVd100 o CYVMR~1 p JO'gillflM O ONY1tl1 ~ S3flYl' O XOMI -IYpOI NYDIlON NO1M3N Yd111110 3AV lMid pO N~f1C CCN 113SSf1ti ~vwa+l Nadn ~" „+~+u+ MM1OS11M O ~~ '3AYQ3fQ9X g G r ~ ~ n - --FF FF ((.... M W b ~ _ ~ ~ ~ ~ ~ ~ ~ p m b MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT Introduction The City of Richfield (the "City"), the Richfield Housing and Redevelopment Authority in and for the City of Richfield (the "HRA"), staff and consultants have prepared the following information to facilitate a modification to the Tax Increment Financing Plan for the Richfield Rediscovered 1999 Tax Increment Financing District (the "RR 1999 TIF Plan" and "RR 1999 TIF District"). The RR 1999 Tax Increment Financing District is a redevelopment tax increment financing district located ,within. the Richfield Redevelopment Project Area. The Richfield Rediscovered 1999 TIF Plan is being modified at this time to specifically: a. incorporate the list of 28 parcels for acquisition (the "Acquisition Parcels") from the Richfield Rediscovered 1999 Tax Increment Financing Plan (the "RR 1999 TIF Plan"), originally approved by the Richfield City Council ("the Council") on October 11, 1999, and subsequently revises by Council on November 22, 1999; b. add 10 new parcels (the "New Acquisition Parcels") to the RR 1999 TIF District; c. allow the use of RR 1999 TIF District increment (the "RR 1999 Increment") for eligible project costs on RR 1999 TIF Plan Acquisition Parcels and New Acquisition Parcels; and d. expand the geographic area by adding 10 parcels; and recognize the possibility of future modifications to the RR 1999 TIF Plan and list of acquisition parcels and the need to simultaneously modify the RR 1999 TIF Plan to continue to allow the use of RR 1999 Increment to pay eligible project costs for the RR 1999 TIF Plan acquisition parcels. • Legal Description of Property in Richfield Rediscovered 1999 Richfield Rediscovered 1999 encompasses all property and adjacent rights-of--way identified by the parcels listed below. Property in Richfield Rediscovered: Address 6220 Clinton Avenue 6608 Stevens Avenue 6625 3`d Avenue 6637 5`~ Avenue 6800 Pillsbury Avenue 6744 Blaisdell Avenue Parcel Numbers 27-028-24-11-0001 27-028-24-42-0073 27-028-24-41-0084 27-028-24-41-0105 27-028-24-34-0016 27-028-24-31-0007 16 • 6833 Park Avenue 6833 Grand Avenue 7036 15` Avenue 7241 2nd Avenue 7316 Clinton Avenue 7301 Garfield Avenue 7544 2"d Avenue 7333 Emerson Avenue 6928 14"' Avenue 6315 Newton Avenue 6310 Irving Avenue 6306 Irving Avenue 6320 Girard Avenue 6645 Knox Avenue 6800 Logan Avenue 6912 Penn Avenue 6933 Queen Avenue 6833 Penn Avenue 6929 Queen Avenue 6901 12~' Avenue 6945 Clinton Avenue 7615 Pillsbury Avenue 26-028-24-33-0086 27-028-24-33-0070 34-028-24-12-0015 34-028-24-13-0150 34-028-24-14-0086 34-028-24-23-0129 `34-028-24-42-0104 33-028-24-13-0090 26-028-24-43-0069 28-028-24-22-0097 28-028-24-21-0075 28-028-24-21-0126 28-028-24-12-0033 28-028-24-31-0032 28-028-24-33-0001 29-028-24-44-0161 29-028-24-44-0170 28-028-24-33-0045 29-028-24-44-0171 26-028-24-43-0082 27-028-24-44-0108 34-028-24-34-0045 Additional Parcels as of January 22, 2001 Modification: Address 6856 Park Avenue 1015 East 69"' Street 6616 Second Avenue 7232 Second Avenue Parcel Numbers 26-028-24-33-0103 26-028-24-34-0050 27-028-24-42-0064 34-028-24-13-0121 i~ 6620 Fifth Avenue 6309 Bryant 6440 Humboldt 7517 Humboldt 6919 Logan 6600 Stevens 27-028-24-41-0028 28-028-24-11-0049 28-028-24-24-0009 33-028-24-42-0077 28-028-24-34-0064 27-028-24-42-0070 The above list of 10 parcels added to the RR 1999 TIF District includes the following parcels that were located in previous Richfield Rediscovered TIF Districts but were not certified. As noted in the Modification to the TIF Plan for the A-5 TIF District and in the Modification to the TIF Plan for the B-5 TIF District, the Plans are being modified to clarify that these parcels are no longer in the A-5 TIF Plan and B-5 TIF Plan, and they are included in the RR 1999 TIF Plan, as modified. Address Parcel Number 6616 Second Avenue 27-028-24-42-0064 6620 Fifth Avenue 27-028-24-41-0028 6440 Humboldt 28-028-24-24-0009 It is the City's intention to acquire other parcels when necessary, at a later date, add such parcels to the property in the Richfield Rediscovered 1999 TIF District, and finance the eligible project costs for the parcels with tax increment revenues after the appropriate plan modification. Property to be Acquired The following RR 1999 TIF Plan Acquisition Parcels and New Acquisition Parcels, including all property and adjacent rights-of--way identified by the parcels, are listed for reference purposes and made part of the RR 1999 TIF District's list of parcels proposed for acquisition in order that RR 1999 Increment may be used to pay for eligible project costs for these parcels: Acquisition Parcels: Address 6220 Clinton Avenue 6608 Stevens Avenue 6625 3`d Avenue 6637 5`'' Avenue 6800 Pillsbury Avenue 6744 Blaisdell Avenue Parcel Numbers 27-028-24-11-0001 27-028-24-42-0073 27-028-24-41-0084 27-028-24-41-0105 27-028-24-34-0016 27-028-24-31-0007 ~s ~J 6833 Park Avenue 6833 Grand Avenue 7036 IS` Avenue 7241 2"d Avenue 7316 Clinton Avenue 7301 Garfield Avenue 7544 2"d Avenue 7333 Emerson Avenue 6928 14~` Avenue 6315 Newton Avenue 6310 Irving Avenue 6306 Irving Avenue 6320 Girard Avenue 6645 Knox Avenue 6800 Logan Avenue 6912 Penn Avenue 6933 Queen Avenue 6833 Penn Avenue 6929 Queen Avenue 6901 12~' Avenue 6945 Clinton Avenue 7615 Pillsbury Avenue 26-028-24-33-0086 27-028-24-33-0070 34-028-24-12-0015 34-028-24-13-0150 34-028-24-14-0086 34-028-24-23-0129 34-028-24-42-0104 33-028-24-13-0090 26-028-24-43-0069 28-028-24-22-0097 28-028-24-21-0075 28-028-24-21-0126 28-028-24-12-0033 28-028-24-31-0032 28-028-24-33-0001 29-028-24-44-0161 29-028-24-44-0170 28-028-24-33-0045 29-028-24-44-0171 26-028-24-43-0082 27-028-24-44-0108 34-028-24-34-0045 Additional Acquisition Parcels as of January 22, 2001 Modification: Address 6856 Park Avenue 1015 East 69"' Street 6616 Second Avenue 7232 Second Avenue Parcel Numbers 26-028-24-33-0103 26-028-24-34-0050 27-028-24-42-0064 34-028-24-13-0121 19 • 6620 Fifth Avenue 6309 Bryant 6440 Humboldt 7517 Humboldt 6919 Logan 6600 Stevens 27-028-24-41-0028 28-028-24-11-0049 28-028-24-24-0009 33-028-24-42-0077 28-028-24-34-0064 27-028-24-42-0070 It is the City's intention to acquire other parcels when necessary to add such parcels to the list of acquisition parcels in the RR 1999 TIF Plan, and to finance the eligible project costs for the parcels with tax increment revenues after the appropriate plan modification. Estimated Impact on Other Taxing Jurisdictions There are no changes to the impact on other taxing jurisdictions due to the modifications of the Richfield Rediscovered 1999 TIF Plan. The Richfield Rediscovered 1999 Program was created to acquire a total of 14 houses in two years - 7 houses per year. The impact on the taxing jurisdictions will remain the same as long as only 14 houses are acquired. Additional parcels are being added to the district so there is a larger pool of houses to choose from when identifying the 14 houses that will be acquired. Municipal Approval and Public Purpose The reasons and facts supporting the findings for the adoption of the Tax Increment Financing Plan for Richfield Rediscovered 1999 as required pursuant to M.S., Section 469.175, Subd. 3 are as follows: Finding that Richfield Rediscovered 1999 is a redevelopment district as defined in M.S., Section 469.174, Subd. 10(a)(1). The tax increment financing district remains a redevelopment district based on the findings made upon adoption of the original tax increment financing plan on October 11, 1999. As part of this January 22, 2001, modification, the HRA is adding 10 additional parcels to the Richfield Rediscovered 1997 district. The HRA finds that each noncontiguous parcels meets the requirements for a redevelopment district because each parcel is occupied by improvements (which means at least 15% of the area is improved), and each parcel is occupied by a single family house that is structurally substandard to a degree requiring substantial renovation or clearance. (See page 22) The findings are based on an analysis of each parcel conducted by staff or consultant, on file in City Hall. • 2. Finding that the proposed development, in the opinion of the City Council, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and that the increased market value of the site that could reasonably be expected to occur without the use of tax increment fznancing would be less than the increase in the market value estimated to result from the proposed development after subtracting the 20 present value of the projected tax increments for the maximum duration of Richfield Rediscovered 1999 permitted by the Plan. The Council reaffirms its findings made -upon adoption of the original tax increment financing plan on October 11, 1999. Those findings are as follows: Due to the high cost of redevelopment on the parcels currently occupied by substandard buildings and the cost of financing the proposed improvements, this project is feasible only through assistance, in part, from tax increment financing. A comparative analysis of estimated market values both with and without establishment of Tax Increment Financing Richfield Rediscovered 1999 and the use of tax increments has been performed as described above. If all development which is proposed to be assisted with tax increment were to occur in Richfield Rediscovered 1999, the total increase in market value would be up to $1,960,000 It is the Council's finding that no development with a market value of greater than $1,478,866 would occur without tax increment assistance in this district within 25 years. This finding is based upon evidence from general past experience with the high cost of acquisition and site improvements in the general area of Richfield Rediscovered 1999 (see Cashflow in Appendix C in the original plan). 3. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 conforms to the general plan for the development or redevelopment of the municipality as a whole. The Plan was reviewed by the Planning Commission on September 28, 1999, and the Planning Commission found that the Plan is in conformance with the general development plan of the City. The Plan, as modified to reflect the revised development proposal, was reviewed by the Planning Commission on November 27, 2000. The Planning Commission found the Plan in conformance with the general development plan of the City. 4. Finding that the Tax Increment Financing Plan for Richfield Rediscovered 1999 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for the development or redevelopment of Richfield Redevelopment Project Area by private enterprise. The Council reaffirms its findings made upon adoption of the original tax increment financing plan on October 11, 1999. Those findings are as follows: The project to be assisted by Richfield Rediscovered 1999 will result in the renovation of substandard properties, increased tax base of the State and add a high quality development to the City. • 21 MAP OF THE RICHFIELD REDISCOVERED 1999 TAX INCREMENT FINANCING DISTRICT • 2z • • ~ ~ ~ a a ~ ~_ ~ m ffi ~ ~ ~ ~ ~ fn ° °¢ ? rx ~i ~zri w ~ n ~ w n is ~ l~ ~ H16~ a V W 7 d. Z W G Q J W W O W GC W_ LL V m O °v pO M O N o~ 0 r 3AV aV03~ FLL9L Hui Hif ~ NOlONN10019 N19t• HL-L H~~~~ Hut FiL4l~ -uo~~ Aal,3 oavolHo snswmoa )INVd aNVlxro anv aNVUaod ~ Fus~ j Hli NO1NIl0 O11C aNz @N3A31s 1SL '311tl1H11001N -rnasMe NINONLLlHM Aan9Sllld ,LNrSY3ld aNV!!9 ~taavN a,3teav9 °JHV 31VUNAl H71a0'N 1NVAaE >"~~ tNOdno NoSa3W3 3NOYGlad i OaValfl AaloawnN ONNaI plwrr XONH NVOO, Nv`JaoW N02AA3N a3M0 3AV NN3d N~nO 3 rrassna NVOta3HS ~~ ~ Nolan ~ ~~ Nanesvnr. •anvs~c /J 0 c (Z S v ai Q: w _ ao ~ ~ ~ w 3 V N Z O (] m N ~ V C 3Atl a1~030C[ (1~ H1V1 ~ . ~~. C ~ ~~ ~ G ..--. C tutit• _ "10~~'Np7O°1e d LL ~ H191 c Hlft ~ ~ ~ = H1CL ~ ~ }_ ~~ v ,~« a m ~ „~~ o Aoclri > C _ oO~tNa snanmoo -gyp ~ N >tava N }.. ~ o ~ ~ 5 anraNVUaoa -p [ ius rur ~ ~ C NO1NIl0 OtlE ~ j ONZ SN3A31S ~~ 3AV 13110:71N 1130SM9 Ntao~uuNann Aafl9Sllid 1NVbYjld ONVaO 131aaVF1 QidliaYO N anV 3lYONAI ~ H~Ia07V 1NVAa9 ~ ~ XVd'100 Q. ~ 1NOdn0 C a~ ~NOr-3ai E o N oavatt7 y p ~ ialaewnH ~ N ~ flNMat C ~ Zr s3rrvr ~ ~-- C xav>t C N„ ~„1' ~ o a NO1M3N ~ C C a9nnc r 3AYNN3d .v ~ ~ N~flO NVOO~NS ~ ~ s ~ o ~ ~ N~dn ~ E a NAM ~ C y ~ ~^v ~ a a F 1. F 1-. {. F. ` y. F ir1\ ~ N ~ e WWs N W_ 10 M M aD W ~ 10 b 0 =N ~~. OF ~ Vl ~ yQ Q g a ~ ~ • • r SUBSTANDARD FINDINGS FOR THE RICHFIELD REDISCOVERED 1999 TIF DISTRICT • SUMMARY OF PROPERTY EVALUATIONS FOR PROPERTIES TO BE ADDED TO THE RICHFIELD REDISCOVERED PROGRAM 1. Additional Properties. Following is the list of properties to be added as part of the modification to the 1999 TIF Plan: Address Parcel Numbers 6856 Park Avenue 26-028-24-33-Ot03 1015 East 69 Street 26-028-24-34-0050 6616 Second Avenue 27-028-24-42-0064 7232 Second Avenue 34-028-24-13-0121 6620 Fifth Avenue 27-028-24-41-0028 6309 B ant Avenue 28-028-24-11-0049 6440 Humboldt Avenue 28-028-24-24-0009 7517 Humboldt Avenue 33-028-24-42-0077 6919 Logan Avenue 28-028-24-34-0064 6600 Stevens Avenue 27-028-24-42-0070 2. Parcel Improvements. Per Minnesota Statute, a minimum of 15 percent of the area of the parcel must contain improvements. Following is the percentage of site i coverage, as determined in the property evaluation reports: Address Site Covera e 6856 Park Avenue 17% 1015 East 69 Street 41 6616 Second Avenue 19% 7232 Second Avenue 25% 6620 Fifth Avenue 24% 6309 B ant Avenue 22% 6440 Humboldt Avenue 22% 7517 Humboldt Avenue 15% 6919 Lo an Avenue 20% 6600 Stevens Avenue 15% 3. Substandardness. Building structures on the properties listed all exhibit substandard conditions and code violations which are not cost effective to correct within the existing structures. 2sa MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE A-5 TAX INCREMENT FINANCING DISTRICT Subsection 2-3 Statement of Objectives District A-5 currently consists of 53 parcels of land and adjacent and internal rights-of--way. District A- 5was created to facilitate the demolition of substandard houses and enable families to construct new houses on the lots through a program known as Richfield Rediscovered, which is administered by the HRA. Currently District A-5 consists of 53 lots with the potential fora total of 55 new homes to be constructed, including double lots. Due to the voluntary nature and timing of the sale of the homes included in District A-5, it is likely that some of the ,parcels will not be redeveloped or will be included in subsequent tax increment financing districts. The budget for District A-5 does assume that 55 new homes are built. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for Redevelopment Project Area A. The activities contemplated in the present Modification to the Redevelopment Plan and the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of District A-5 and Redevelopment Project Area A. Generally, the Modification includes removing 2 parcels, that were not certified, from the District. Subsection 2 5 Legal Description of Property in Tax Increment Financing District A-5 The following property and all adjacent rights-of--way identified by the parcels listed below are included in District A-5 but are not certified in the District. These parcels are being removed from District A-5 and included in the RR 1999 TIF Plan, as modified. Address 6616 Second Avenue 6620 Fifth Avenue Parcel Number 27-028-24-42-0064 27-028-24-41-0028 24 MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR THE B-5 TAX INCREMENT FINANCING DISTRICT Subsection 2-3. Statement of Objectives District B-5 currently consists of 29 parcels of land and adjacent and internal rights-of--way. District B-5 is created to facilitate the demolition of substandard houses and enable families to construct new houses on the lots through a program known as Richfield Rediscovered, which is administered by the HRA. Currently District B-5 consists of 291ots with the potential for a total of 30 new homes to be constructed, including double lots. Due to the voluntary nature and timing of the sale of the homes included in District B-5, it is likely that some of the parcels will not be redeveloped or will be included in subsequent tax increment financing districts. The budget for District B-5 does assume that 30 new homes are built. This plan is expected to achieve many of the objectives outlined in the Modification to the Redevelopment Plan for Redevelopment Project Area B. The activities contemplated in the present Modification to the Redevelopment Plan and-the Tax Increment Financing Plan do not preclude the undertaking of other qualified development or redevelopment activities. These activities are anticipated to occur over the life of District B-5 and Redevelopment Project Area B. Generally, the Modifications include removing one parcel, which was not certified, from the District. Subsection 2-5 Leal Description of Property in Tax Increment Financing District B-5 The following property and all adjacent rights-of--way identified by the parcels listed below are included in District B-5 but are not certified in the District. These parcels are being removed from District B-5 and included in the RR 1999 TIF Plan, as modified. Address Parcel Number 6440 Humboldt 28-028-24-24-0009 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT MANAGER NanaE, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, .TITLE DEPARTMENT DIRECTOR REVIEW: ~f ~'` LJ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA TION: Consideration of a request fora 75-day extension for removal of Closing Contingencies from CSM Investors II, Inc. I. RECOMMENDED ACTION: By Motion: Approve up to a 75-day extension for removal of Closing Contingencies from CSM Investors II, Inc. with the stipulation that CSM enter into an agreement with the City of Richfield addressing the schedule and cost allocation.. of public improvements as defined in Article 6 of the Contract for Private Redevelopment. Absent such an agreement within 30 days of this approval, the extension shall be deemed null and void. III. BACKGROUND On January 18, 2000, the Richfield Housing and Redevelopment Authority (HRA) entered into a Contract for Private Redevelopment with CSM Investors II, Inc. • (CSM) for the redevelopment of Phase III of the Lyndale Gateway development. Section 3.1 of that agreement describes several "Closing Contingencies" that CSM must achieve before commencing the project. Among those Closing Contingencies are CSM's execution of purchase agreements or request of condemnation on all 0116csm properties in the development area as well as signed leases for at least 66% of the planned commercial space. On August 21, 2000, CSM was granted an extension for completion of Closing Contingencies until February 1, 2001. This extension was granted in order to allow CSM additional time to sign a lease with their primary tenant and to synchronize the schedule for the development with the schedule for reconstructing the adjacent portions of Lyndale Avenue. CSM is now requesting a further extension until April 16, 2001 (a 75-day extension from February 1) to allow time to wrap up final negotiations with their primary tenant. If this extension is granted, then CSM would be requesting any potential condemnation of properties by April 16, resulting in a completion of the "quick take" condemnations and having the properties vacated no later than the end of July 2001. The date by which the properties are vacated is of great importance to the City's scheduled reconstruction of Lyndale Avenue. In order to reconstruct the road, the commercial properties which have their primary entrance onto Lyndale Avenue must be vacated in order to allow for the reconstruction of Lyndale Avenue. This had originally been. planned to occur by May 1. Representatives of URS/BRW, the City's consultants on the project, have concluded in the attached letter that beginning the reconstruction as late as August 1, 2001 would result in a completion later than November 15, 2001. The contract with CSM currently requires that the City and/or HRA complete certain public improvements to Lyndale Avenue prior to November 15, 2001. Based on the language contained in the attached letter from URS/BRW, staff is recommending that the date and cost allocation for completion of these public improvements be further examined. Staff will continue to work with CSM, City Public Works staff and consultants to refine a schedule for the completion of the public improvements as well as allocation of financial responsibilities for additional .costs that are created by the new construction timeframe. III. BASIS OF RECOMMENDATION A. POLICY The HRA entered into a Contract for Private Redevelopment with CSM for Phase III of the Lyndale Gateway redevelopment on January 18, 2000. That contract contains certain Closing Contingencies, including site assembly and standards for the required degree of pre-leasing. On August 21, 2000 CSM was granted an extension for the completion of Closing Contingencies until February 1, 2001. CSM has requested an additional extension for the completion of Closing Contingencies until April 16, 2001 in order to complete negotiations for lease terms with their primary tenant. Staff and consultants have determined that if the extension is granted, then it may not be possible to complete public improvements assigned to the City/HRA in the timeframe established in the Contract and within the current budget for those public improvements. B. CRITICAL ISSUES The commencement of the reconstruction of Lyndale Avenue cannot occur until the properties along Lyndale have been vacated. This extension would push back the vacancy date of these properties to as late as July 31, 2001, rather than May 1, 2001 as had been anticipated in the road reconstruction schedule. The City's consultants on the road reconstruction have concluded that the delay in commencement of the road project may result in a later completion of the Public Improvements and at greater cost. C. FINANCIAL If the contract is amended to reflect the recommended schedule for completion of Public Improvements, then additional costs of 10 to 20 percent are anticipated for the cost of public improvements. D. LEGAL HRA legal counsel has reviewed CSM's request as well as this staff report. IV. ALTERNATIVE RECOMMENDATION~S~ Do not approve the request for extension. Approve the recommended action with the added stipulation that CSM must provide staff with a copy of a lease with their primary tenant within 30 days without which the extension is to become null and void. V. ATTACHMENTS CSM's request for extension (Attachment A) • A letter from URS/BRW commenting on the extension's affect on the schedule for completing Public Improvemens to Lyndale Avenue. (Attachment B) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Murray Kornberg, CSM Investors II, Inc. C7 ATTACHMENT Al ~~~~ `~orpara.~ion ?575 Univcr~ity Ave. t~~,, ~115U - St. Paul, MN 55114-1024 - (651)646-1717 Fax (651)646-24A4 January 9, 2001 Mr. John Stark City of Richfield 6700 Portland Ave, S. Richfield, MN 55423 Re: Lyndale Gateway Dear John: As you know, our Contract for Redevelopment currently provides for the satisfaction of certain conditions on or before February 1, 2001. While many of those conditions have been satisfied, at this point we are still not in a position to remove ow final conditions so that we can begin the acquisition process and if necessary, request condemnation. As we have stated previously, in order for us to be able to proceed with acquisition of the property, wt will need to complete our anchor tenant lease for the project. Notwithstanding the lengthy negotiations that have been ongoing since early 2000 with our tenant, we have made significant progress in the last 45 days, and believe that we are only one more round of negotiations away from having a lease document that will be acceptable to both parties. In order for us to accommodate the tenant's proposed delivery schedule lease negoriations must be concluded in the next 2-3 weeks, a fact that the tenant is awaze of and understands. We aze co~dent that our negotiations can be concluded in that time fi-ame, and that thereafter we can proceed with our acquisition efforts. We aze also aware that the City is anxious to complete the necessary improvements to Lyndale Avenue, and must do so in a time frame that allows construction to be completed this year, yet still maintains access to the existing businesses prior to the time that we have acquired the property and commenced our own construction activity. We are currently reviewing the plans, specifications and schedule for the commencement and completion of the road improvements, to insure that our current estimated acquisition schedule can work with the schedule for the completion of the road, and maintain access to the property. Based on these factors, we hereby request an extension to the contingency removal date from February 1, 2001 to April 16, 2001. Based on our preliminary review of the required road improvements we believe that this date will allow for all of the required steps in the acquisition process, and still provide sufficient time for the completion of the road improvements this year. We look forward to concluding our lease negotiations as quickly as possible, and proceeding with the project, and are confident that we can do so in this time frame. • ATTACHMENT A2 Twill be available to discuss L~:is matter at the January 16, 2001 HRA meeting. Should you have any questions regarding the project prior to that time, please do not hesitate to contact rne. Sincerely yours, CSM Investors ~, Inc. Murray Kornb Vice President • • ATTACHME.;T B1 t ~~1111, 9r1~~ January 10, ?001 NU. Sohn Stark Community Development Department City of Richfield 6700 Portland Avenue Richfield, MN 55423 RE: Lyndale Avenue Street Improvements Project City Project #401-30-672 Response to Developer Extension Request Dear John: This letter responds to your request that BRW review the issue of CSM Investors II, Int.'s petition to the City of Richfield for an extension to the Contract for Private Redevelopment related to the proposed redevelopment along the west side of Lyndale Avenue from 77's to 76'~ Streets. We understand that the City is considering granting this extension, but are concerned about the . schedule impacts caused to the construction of this Lyndale Avenue Street Improvements Project. Following separate conversations with you and Murray Komberg of CSM this past Monday, I met with members of our design team and field engineers to discuss these issues and offer the following: 1. Your draft Staff Report suggests that an extension would set CSM's vacancy date at July 31, 2041, with an anticipated construction start date of August 1, 2001. We could assume that weather may allow decorative curb and concrete sidewalk work only until late October 2001, thus giving the public improvements contractor only 13 weeks to complete the project. We do not believe this is sufficient time to complete the entire project. 2. There is an additional concern that by compressing the schedule the amount of time available to the public utility companies for reconstruction of their lines, namely gas, is decreased. We have found on recent projects that these companies have not been able to perform their reconstruction work when the project requires, thus causing overall delays. The shorter the schedule, the greater the risk for this work not to be performed. 3. We understand that CSM intends to have their buildings constructed and open by mid December. 2001. This means that they could require full perimeter access for building construction well. past the end of October, when the adjacent sidewalks neEd to be installed as per item 1 above. We believe there is a timing issue between contracts, especially on the northerly half of the Thresher Square project. 700 Third Street South Minneapo~s. MN 55415 612.370.0700 Tel 612.370.1378 Fax ATTACHMENT B2 lvlr. John Stark January 10, 2001 Page 2 4. Because of the abbreviated schedule and construction timing issues of items 1 and 3 above, we would suggest that the City consider extending the substantial completion date of the public improvements from November 2001 until July 15, 2002, considering the following: a. Year 2001 work would include all improvements from the back of the westerly curb line, east, and only underground work, signal systems and street lighting on the west side of this curb line, per the attached plan. b. Year 2002 work would include the remaining improvements on the west side such as the curbing and decorative sidewalks, landscaping, irrigation, specialty lighting, planters, flagpoles and furnishings. c. Assuming road restrictions lifted by May 15, 2002, allow 2 months for construction thus setting a substantial completion date of July 15, 2002. d. Assuming CSM completes construction of the buildings and requires ingress/egress, they would need to conswct temporary sidewalk pavements. The City may also consider requesting temporary sidewalks along the west side of the roadway for public pedestrian access. e. ~ ]n year 2002, it will be necessary to do some southbound lane closures for construction. f. To extend this contract unti12002, we estimate an approximate add of 10 to 20% to the total contract cost, to allow for lane closures, remobili2ation, increased material and labor costs, and other considerations. We hope this provides you with the information you have requested. Please call me at 612-373- 6329 if you have any questions. Sincerely, BRW, Inc. Thomas R. H n on, A I.A Cc/encl: Ian Peterson, BRW George Atkinson, City of Richfield BRW Fite 33897 031 2001 ATTACHMENT B3 =~~~ ~~ 3~ r ~2 • ~~ H14L `--' Q~ p ~+ • ~ ~ ~W ~ a~ ~s. ~ ~ ~ H ~- ~_ o .r N I 1 ' " ~~ ~ ~, ~~ i 9 t o ~; l~ C ~ 0 3 A' o N ~~~ _~ ~~=$~ ~y;aa qn r~ Y7~ ~• o~ f -~~~- -- ~~ ~ • l~~~\ I ~ 1332ii5 k-tLLL o • x.eo ~ ~ ~ C ~ Y- j I ~ ~~ ~ ~ I nm ewe ~ ~ ~ • • AGENDA ITEM # 5H REPORT # 9 BRUCE PALMBORG, REPORT PREPARED BY: COMMUNITY DEVELOPMENT DIRECTOR NAME, T/TLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a proposal to continue the Community Apartment Program for 2001. RECOMMENDED ACTION: By Motion: Approve the execution of contract with. Julianne Schwietz for the Community Apartment Program beginning February 1, 2001 for 12 months. II. BACKGROUND In January 2000, the Richfield Housing and Redevelopment Authority (HRA) approved a contract with Julianne Schwietz to administer the Community Apartment Program (CAP) through January 2001. It is appropriate to consider entering into a contract for 2001 (Attachment A). III. BASIS OF RECOMMENDATION Attached for your review are the accomplishments for the 2000 (Attachment B) and proposed strategies for 2001 (Exhibit A to contract). The 2000 accomplishments are listed under four strategies: 0116cap 1. "To assist owners/managers in utilizing the best management practices .. . 2. "To provide appropriate Community-based programs/services..." 3. "To help the community-at-large. recognize CAP results..." 4. "To employ a collaborative approach that involves community stake- holders...to prevent problems ..." A. POLICY The CAP program has existed for several years and is essential to help keep the approximate 5,D00 apartment units viable. B. CRITICAL ISSUES CAP is a successful program which focuses on approximately one- third of the housing supply in the community. C. FINANCIAL The contract was anticipated in the,recently approved HRA budget for 2001. For several years, the contract was held at $50,000. For 2001, the contract amount would be $52,100. D. LEGAL N/A IV. ALTERNATIVE RECOMMENDATION(S~ Delay approval • End the program. Direct staff to find another consultant.. V. ATTACHMENTS • Proposed contract (Attachment A) Accomplishments for 2000 (Attachment B) Informational piece on Resident Services Coordinator VI. PRINCIPAL PARTIES EXPECTED AT MEETING Julianne Schwietz of Community Consulting, Inca (CCI) Attachment A Page 1 of 4 PROFESSIONAL SERVICE AGREEMENT COMMUNITY APARTMENT PROGRAM THIS AGREEMENT made and entered into by and between the Housing and Redevelopment Authority in and for the City of Richfield, STATE OF MINNESOTA, hereinafter referred to as the HRA, and Community Consulting, Inc., hereinafter referred to as CCI. WITNESSETH: WHEREAS, the HRA wishes to purchase the services of CCI; and WHEREAS, there are funds available for the purchase of these services. NOW, THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the HRA and CCI agree as follows: 1. TERMS AND COST OF THE AGREEMENT CCI agrees to furnish services to the HRA to pursue those outcomes (objectives) within the identified time period as indicated. on the attached "Exhibit A". The total cost of this Agreement shall not exceed $52,100 plus prior approved expenses. All reports, memos, and other data produced by CCI become the property of the HRA. 2. PAYMENT FOR SERVICES Invoices for services performed, and expenses incurred, by CCI may be submitted monthly. Payment for services and expenses, shall be made directly to CCI by check. Invoices shall be of sufficient detail for the HRA to determine the activity and personnel for which payment is being made. Payment shall be made within 30 days of receipt of an invoice by the HRA. 3. INDEPENDENT CONTRACTOR CCI shall select the means, method, and manner of performing the services herein in consultation with the HRA. Nothing is intended or should be construed in any manner as creating or establishing the relationship of copartners between CCI and the HRA or as constituting CCI as the agent, representative, or employee of the HRA for any purpose or in any manner whatsoever. CCI is to be and shall remain an independent contractor with respect to all services performed under this Agreement. CCI represents that it has or will secure at its own expense all personnel required in performing services under this Agreement. Any and all personnel of CCI or other persons while engaged in the performance of any work or services required by this Agreement shall have no contractual relationship with the HRA, and shall not be Attachment A Page 2 of 4 considered employees of the HRA. Any and all claims that may or might arise under the Unemployment Compensation Act or the Worker's Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment or alleged employment, including, without limitation, claims of discrimination against CCI, its officers,-agents, contractors, or employees shall in no way be the responsibility of the HRA. CCI shall defend, indemnify, and hold the HRA, its officers, agents, and employees harmless from any and all such claims irrespective. of any determination of any pertinent tribunal, agency, board, commission, or court. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever-from the HRA, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Worker's Compensation, Unemployment Insurance, disability, severance pay, and PERA. 4. NONDISCRIMINATION The HRA operates in accordance with the City of Richfield's policies against discrimination. No person shall be excluded from or denied the benefits of any service performed or contemplated under the terms of this Agreement on the grounds of race; color, creed, religion, age, sex, disability, .marital status, public assistance status, ex- offender status, or national origin; and no person who is protected by applicable Federal or State laws against discrimination shall be otherwise subjected to discrimination. CCI shall (1) furnish. all information and reports which may be required by the City's Affirmative Action Policy, and (2) it shall comply with the City's Equal Employment Opportunity/Affirmative Action Policies with regard to employment and contracting. 5. INDEMNITY AND INSURANCE CCI agrees to defend, indemnify, and hold the HRA, its officers, and employees harmless from any liability claims, damages, costs, judgments, or expenses, including reasonable attorney fees, resulting directly or indirectly from an act or omission (including without limitation professional errors or omissions) of CCI, its agents, employees, or assignees in performance of the services provided by this contract, and against all loss by reason of the failure of CCI to fully perform in any respect, all obligations under this contract. 6. DATA PRIVACY CCI agrees to abide by all applicable State and Federal laws and regulations concerning the handling and disclosure of private and confidential information concerning individuals and/or data including but not limited to information made non-public by such laws or regulations. 7. RECORDS -AVAILABILITY CCI agrees that the HRA, the State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and. transcribe Attachment A Page 3 of 4 any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of CCI and involve transactions relating to this Agreement. Records shall be retained for three years from date of final payment with respect to the project. 8. NON-ASSIGNMENT CCI shall not assign, subcontract, transfer, or pledge this contract and/or the services to be performed hereunder, whether in whole or in part, without the prior written consent of the HRA. 9. MERGER AND MODIFICATION a) It is understood and agreed that the entire Agreement between the parties is contained herein and that Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. b) Any material alterations, variations, modifications,. orwaivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 10. DEFAULT AND CANCELLATION a) If CCI fails to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the performance of the Agreement, this shall constitute a default. Unless the default is excused, the HRA, may upon written notice, immediately cancel the Agreement in its entirety. b) The HRA's failure to insist upon strict performance of any provision or to exercise any rights under this Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. c) This Agreement may be canceled without cause by either party upon twenty (20) days written notice. 11. CONTRACT ADMINISTRATION In order to coordinate the services of CCI with the activities of the HRA so as to accomplish the purpose of this contract, Bruce Palmborg shall manage this contract on behalf of the HRA and serve as liaison between the HRA and CCI. Attachment A Page 4 of 4 In addition, from time to time, meetings shall be held between CCI and the Community Apartment Program Team. CCI may also report directly to the HRA Board of Commissioners. 12. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing. Notices shall be sent as follows: To the HRA;. Bruce Palmborg Community Development Director City Hall 6700 Portland Avenue South Richfield, MN .55423 To CCI; Julianne Schwietz Community Consulting, Inc. 3557 Tara Lane Woodbury, MN 55125 CCI having signed this contract, and the HRA having duly approved this contract on January 16, 2001, and pursuant to such approval and the proper HRA officials having signed this contract, the parties hereto agree to be bound by-the provisions herein set forth beginning February 1, 2001 for a period of twelve months or until terminated as provided above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD STATE OF MINNESOTA By: Executive Director By: Chairperson COMMUNITY CONSULTING, INC. By: Its [H:Cdadmin:PPL:ProserCCq Attest Attest Attest Exhibit A Page 1 of 3 Community Apartment Program Community Consulting; Julianne Schwietz Richfield CAP 2001 Strategies, Tactics (actions), and Measures Overall Goal: To encourage strong, stable, and vital apartment communities in collaboration with other City and community services. Strategy 1: To assist owners/managers in utilizing the best management practices available by enhancing owner/management involvement and satisfaction in CAP. Tactics: (A) Owners of all rental properties are invited/encouraged to attend special training pertinent to their needs. (B) Owners/managers are invited to suggest components of CAP events (C) Invite owners/managers to participate in CAP sponsored educational events. (D) Encourage owners/managers to complete certification in Crime Free Multi-Housing program. (E) Provide accurate, comprehensive, and timely information through newsletters, flyers, meetings and presentations. • Result Measures (A) Owners and managers (of small properties) will be invited to attend management training specific to their needs: (B) All owners and managers will be invited to Crime Free. Multi-Housing training. (C) Number of owner/managers participating on RAMA executive board committees and other decision making processes will increase by 10% over 2000. (D) Number of owner/managers attending RAMA and CAP events will increase by 10% over 2000. (E) Number of owner managers to complete Crime Free Multi Housing Phase 1 certification for their properties will increase by ten over 2000. (F) Number of owner managers to complete Crime Free Multi Housing (Gold) certification for their properties will increase by two over 2000. (G) Six RAMA Reporters will be published in 2001. Strategy 2: To provide appropriate Community-based programs/services to develop rental resident involvement and a sense of community. Tactics: (A) Continue Tenant Services through grant secured from LCTS funds. (B) Significantly increase the number of youth involved in youth programs. (C) Distribute communications to rental residents. (D) Residents will have a direct voice in determining collaborative initiatives. (E) Replicate the Resident Council model in other properties. (F) New. Participate in immigrant studies in Richfield. Results Measures: Exhibit A Page 2 of 3 (A) New. Rename "Tenant Services" at Village Park Apartments to "Resident Services." (B) Six tenant activities will be offered at Village Park. (C) New. Increase the apartment community access to available resources and services, with connections to 10 resident needs. (D) Reduce police calls for service by 10%. (E) Number of residents participating in YouthNet activities will increase by 10% over 2000. (F) Ten communication agreements will be made in 2001. (G) New. Collaborative activities will be offered to rental residents at three rental communities in 2001.. (H) Number of rental. residents involved with a resident council will increase by 20% over 2000. (I) Attend committee meetings with others in City working toward immigrant population study and needs. Strategy 3: Help the community at large recognize the efforts and positive results of CAP. Tactics: (A) Provide articles on CAP activities to the Richfield Sun-Current. (B) Provide articles for Your City. (C) Provide workshop/open house for general public. Results Measures: • (A) Provide two article ideas/press releases to the Richfield Sun-Current. (B) Write three. articles for Your City. (C) Publicize in Sun-Current (D) Provide one workshop for the general public. Strategy 4: To employ a collaborative approach that involves community stakeholders, staff, and the CAP Review Team in order to prevent problems and provide measurable factors for evaluation of our work. Tactics• (A) New. Provide a comprehensive plan from the Livable Community Team to the City Council. (B) Provide info. about all CAP initiatives to collaboration partners, and staff, Council (C) Significantly increase the level of community collaboration. (D) Decrease the level of Housing Code violations/noncompliance. (E) Continue to meet with the CAP Review Team to look at progress. (F) New. Continue year 2000 agreement with FamiLink Partnership Results Measures: (A) Comprehensive Plan will include a new ordinance, abatement plan, and step by step approach to problem solving. (B) Meet with collaboration partners and staff throughout year. . (C) Number of community service providers actively involved will increase by 30% over 2000. (D) 100% of properties identified by Livable Communities Team will be in compliance with housing codes or will be given formal notice of legal proceedings. Exhibit A Page3of3 (E) Meet 11 of 12 months with the CAP Review Team. (F) Resident Services Coordinator will work at FamiLink and receive pertinent training. • ., Attachment B Page 1 of 4 Community Apartment Program Community Consulting; Julianne Schwietz OVERVIEW OF 2000 CAP ACCOMPLISHMENTS Richfield CAP 2000 Strategies, Tactics (actions), and Measures Overall Goal: To encourage strong, stable, and vital apartment communities. Strategy 1: To assist owners/managers in utilizing the best manager~nt practices available by enhancing owner/management involvement and satisfaction in CAP. Tactics: (A) New. Owners of small rental properties are invited/encouraged to attend special training pertinent to their needs. (B) Owners/managers are invited to suggest components of CAP events (C) Invite owners/managers to participate in CAP sponsored educational events. (D) Encourage owners/managers to complete certification in Crime Free Multi-Housing program. (E) Provide accurate, comprehensive, and timely information through newsletters, flyers, meetings and presentations. Result Measures Year end Report (A) Sixty owners (of small properties) will be invited to attend management training. January, 2001, in cooperation with Crime Prevention, Crime Free Multi-housing. (B) Number of owner/managers participating on RAMA executive board committees. and other decision making processes will increase by 10% over 1999. Realized. Members from new Village Green and new managers from Dominium have been invited to join RAMA Board. Both have accepted invitation. (C) Number of owner/managers attending RAMA and CAP events will increase by 15% over 1999. While numbers vary with topic issues, oveNall we have seen about a 20 increase. (D) Number of owner managers to complete Crime Free Multi Housing Phase 1 certification for their properties will increase by ten over 1999. Realized. Sixteen completed training in 2000. (E) Number of owner managers to complete Crime Free Multi Housing (Gold) certification for their properties will increase by three over 1999. Not Realized. No • new properties have. completed certification. (F) Six RAMA Reporters will be published in 2000. Realized. Attachment B Page 2 of 4 Strategy 2: To provide appropriate Community-based programs/services to develop rental resident involvement and a sense of community. Tactics: (A) New. Develop Tenant Services through grant secured from Local Collaborative Time Study (LCTS) funds. (B) New. Significantly increase the number of youth involved in youth programs. (C) Distribute communications to rental residents. (D) Residents will have a direct voice in determining collaborative initiatives. (E) Replicate the Resident Council model in other properties. Results Measures: Year end Report (A) Establish a Tenant Services program at Village Park Apartments (formerly Hampton Place). This project is going extremely well, with our Tenant Services Coordinator making calls and establishing relationships with the residents. (B) Six tenant activities will be offered at Village Park. No new activities were allowed while in the process of selling the property. The new Tenant Services Coordinator began working in the end of October. Activities are being planned at this time. Village Green has also hired a resident to coordinate ongoing tenant activities. The CAP Tenant Services Coordinator is working with the resident coordinator. (C) Increase by four, the apartment community access to available resources and services. New resources have been established and will be introduced in Tenant Services at Village Park. (D) During 2000, in rental communities of 25 units or more, reduce police calls for service by 10%. In cooperation with Police and Tenant Services. In rental communities of 25 units or more, Richfield police stats show a 20% reduction in calls for service where Crime Free Multi-Housing or Apartment Watch is in place. There is a 30% increase in calls where these programs are not in place! (E) Number of residents participating in YouthNet activities (Extreme Summer) will increase by 10% over 1999. Realized. YouthNet reorganization transfers Extreme Summer activities to playground and Park Programs as well as YMCA, churches, etc. Participation in youth activities was focused at the Suncrest apartments on Cedar Ave. There was substantial participation by 25 children who were,not involved with youth programs at alI in 1999. This would be an increase over 100%. (F) Ten communication agreements will be made in 2000. (Apartment managers agree to distribute CAP communications to residents.) Eight in place at this time. (G) Four collaborative activities will be offered to rental residents in 2000. Two pilot projects started. One in Hampton Place, no longer viable, one at Suncrest, going very well with collaborative programs and activity sign-up for youth. Attachment B Page 3 of 4 (H) Number of rental residents involved with a resident council will increase by 20% over 1999. Realized. Century Court had their first resident council meeting in December. The number. ofparticipates increased by 100%. Village Green discontinued the Resident Council at Hampton Place. Even with this discontinuation, there is an increase due to the new program at Century Court. Strategy 3: Help the community at large recognize the efforts and positive results of CAP. Tactics: (A) New. Initiate an interview on CAP and our objectives/results with the Richfield Sun- Current. (B) Provide articles for Your City. (C) Participate in Richfield's Remodeling Fair. (D) Provide workshop/open house for the general public Results Measures: Year end Report (A) Provide two article ideas/press releases to the Richfield Sun-Current. Not realized. Contact made, still pursuing for 2001. (B) Write three articles for Your City. Not realized. Transferring to 2001 tactics. (C) Be present at the Remodeling Fair. Provide goodwill with candy and information. Realized. Handouts and information on CAP and RAMA were distributed. (D) Provide one workshop for rental property owners on new ordinances regulatory apartments. Not realized. See tactics for 2001. (E) Publicize in Sun-Current. Not realized. See tactics for 2001. Strategy 4: To employ a collaborative approach that involves community stakeholders, staff, and the CAP Review Team in order to prevent problems and provide measurable factors for evaluation of our work. Tactics: (A) New. Propose acost-effective evaluation (with rough expenses) that would constitute a year to year snapshot of progress of the goal "to encourage a strong, stable, vital apartment community." (B) Provide info. about all CAP initiatives to collaboration partners, and staff. (C) Significantly increase the level of community collaboration. (D) Decrease the level of Housing Code violations/noncompliance. (E) Continue to meet with the CAP Review Team to look at progress. • Attachment B Page 4 of 4 Results Measures: Year end Report (A) Work with a research company to survey residents, owners/managers for evaluation purposes. Determined cost prohibitive to use research company. (B) Provide semiannual report to collaboration partners and staff. Realized. Taking place through CAP Review Team, Collaboration meetings ie: (new group; Mixed Bag) and newsletters. (C) Number of community service providers actively involved will increase by 20% over 1999. Realized. Wonderful response through Mixed Bag, group of Richfield Service Providers. Continuing to grow. (D) 100% of properties identified by Livable. Communities Team will be in compliance with housing codes or will be given formal notice of legal proceedings. Realized. Dominium was the only property not in compliance. At this time they are working with the Livable Community Team on an abatement agreement. Team is also studying various actions for Council approval of new initiatives. (E) Meet 11 of 12 months with the CAP Review Team. Realized. Ongoing, in conjunction with the Livable Community Team, often twice(+)/month. f }~' < ~..,~ ~ - . ...-4,3: •7 '1j Dear Residents of Village Park Apartments: Please allow me to introduce myself. I am Cathleen Godsall, Resident Services Coordinator, with Community Apartment Program of Richfield. I grew up in Richfield and am happy to be back here as a social worker encouraging and supporting your apartment community in its development as a vital neighborhood community of Richfield. It is my hope to get to meet many of you in the months to come. As Resident Services Coordinator, please consider me a partner to work with in building a deeper sense of community here. Our roles as parents, workers, students, or newcomers often require community support. Resources exist among your neighbors and outside your neighborhood. These resources include: support as we parent our children, safe and fun activities for our youth, and educational, social, and recreational programs that will help meet your vocational, emotional, and spiritual needs. My role is to try and link you to those community resources you may find a need for at some time. My services are free and confidential. The management of Village Park does not employ me, but they are supportive of efforts to build a stronger sense of community here. We can accomplish this by getting to know each other. I hope to meet some of you at the social events, Arlene Francis, the Village Park Social Director is coordinating. I am also going to be knocking on apartment doors in order to meet as many residents as I can. Please feel free to call me with your concerns and suggestions at (612) 243-1388. I am located at the After School Program Room in building 716, Apartment 104. We can meet there or in your home. I can arrange for a translator if necessary, as I am an English speaker. I would enjoy learning some of your native language. Together, we can explore the existing community resources and discover our own strengths and talents that will support one another and make Village Park a thriving, safe, and strong neighborhood. I look forward to meeting you and hearing from you. This is your community so think about how you want to shape it! Sincerely yours, ~~~~~~~ ~~i~~ LScc~ J • STAFF REPORT AGENDA ITEM # 5G REPORT # 8 HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 • • PAM BOOKHOUT, REPORT PREPARED $Y: REHABILITATION SPECIALIST NAME, TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~~ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolution regarding authorization to issue Certificates of Completion to John B. Mahoney Construction Inc. for 7613, 7619 and 7623 Nicollet Avenue, Karla K. Dagnault for 7532 Girard Avenue, and Spencer Dahl Construction, Peter C. Brandt and Lisa M. Bystedt for 6901-12th Avenue. I. RECOMMENDED ACTION: By Motion: Authorize the Chair and Executive Director to execute the Certificates of Completion in accordance with the attached resolution. II. BACKGROUND Development agreements under the Richfield Rediscovered program provide for the issuance of a Certificate of Completion when residential. construction is completed. (A sample certificate is attached.) All homes have been completed and sold. A Certificate of Occupancy has been issued by the Inspections Division for the three units on Nicollet Avenue. Temporary Certificates of Occupancy have been issued for 7532 Girard Avenue (pending final corrections to the detached garage), and 6901-12th Avenue (pending installation of landscaping in the spring). Therefore, authorization for Certificates of Completion is requested at this time in anticipation 0116compcert of the builders' requests. An escrow has been withheld to cover completion of landscaping at the 6901-12th Avenue property. III. BASIS OF RECOMMENDATION A. POLICY . The Richfield Housing and Redevelopment Authority (HRA) must authorize the issuance of Certificates of Completion. B. CRITICAL ISSUES Construction has been completed and the Inspections Division has issued full and temporary Certificates of Occupancy. The issuance of a Certificate of Completion is required to release the builder from the Development Agreement after construction completion. C. FINANCIAL . N/A D. LEGAL N/A IV. ALTERNATIVE RECOMMENDATION(S~ Do riot issue Certificates of Completion at this time: V. ATTACHMENTS . HRA Resolution Sample Certificate of Completion VI. PRINCIPAL PARTIES EXPECTED AT MEETING N/A • HRA RESOLUTION NO. RESOLUTION AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR THE NEWLY CONSTRUCTED RESIDENTIAL PROPERTY AT 7613, 7619, 7623 NICOLLET AVENUE SOUTH, 7532 GIRARD AVENUE SOUTH, AND 6901-12th AVENUE SOUTH WHEREAS, the Richfield Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) entered into contract with John B. Mahoney Construction Inc. for 7613, 761.9 and 7623 Nicollet Avenue, Karla K. Dagnault for 7532 Girard Avenue, and Spencer Dahl Construction, Peter C. Brandt and Lisa M. Bystedt for 6901-12th Avenue; and WHEREAS, the new homes located at 7613, 7619 and 7623 Nicollet Avenue, 7532 Girard Avenue, and 6901-12th Avenue are completed. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, the Certificates of Completion for 7613, 7619 and 7623 Nicollet Avenue, 7532 Girard Avenue, and 6901-12th Avenue can be issued. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of January, 2001. • Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • CERTIFICATE OF COMPLETION The undersigned hereby certifies that has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at legally described as and is released and forever discharged from its obligations to construct under such above- referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD, MN By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 20 , by Thomas E. Harms and Samantha Orduno the Chairperson and Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55423 612-861-9760 • AGENDA ITEM # REPORT # • 5F REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: JOHN STARK, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of a motion ratifying staff action for settlement of condemnation proceedings pertaining to property located at 7601 Lyndale Avenue. I. RECOMMENDED ACTION: By Motion: Approval of a motion ratifying staff action for settlement of condemnation proceedings pertaining to property located at 7601 Lyndale Avenue. III. BACKGROUND ~ On October 18, 1999, the Richfield Housing and Redevelopment Authority (HRA) approved the use of eminent domain (condemnation} for the acquisition of certain properties on the east side of the 7600 block of Lyndale Avenue. This action came at the request of Richfield Senior Housing, the developer for that area. Since that time, the condemnation process has proceeded for several such parcels, including the property located at 7601 Lyndale Avenue. The condemnation action for this property has concluded in a settlement to which the property owner, the developer and HRA legal counsel were parties. The value for this property reached in the settlement was $255,000. The HRA has already 0116-7601 Lyndale NAME, TITLE deposited $200,000 with the courts for this condemnation action, so an additional $55,000, plus interest, must now be paid for the property. III. BASIS OF RECOMMENDATION A. POLICY • Acquisition of this property through condemnation was approved on October 18, 1999. • The property owner,. developer and HRA legal counsel have reached a value for the property through a settlement. B. CRITICAL ISSUES • This action is needed to ratify actions already taken by HRA legal counsel C. FINANCIAL • The developer (Richfield Senior Housing) is financially responsible for reimbursing the HRA for costs: incurred in the acquisition of this property. D. LEGAL • HRA legal counsel was a party to the settlement agreement for this property. IV. ALTERNATIVE RECOMMENDATION(S~ • N/A V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • AGENDA ITEM # 5E REPORT # G STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 JOAN STARK, REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER NAME, TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ~' ITEM FOR HRA CONSIDERATION: Consideration of a motion ratifying staff action for settlement of condemnation proceedings pertaining to property located at 7621 Lyndale Avenue. I. RECOMMENDED ACTION: By Motion:. Approval of a motion ratifying staff action for settlement of .condemnation proceedings pertaining to property located at 7621 Lyndale Avenue. II. BACKGROUND On October 18, 1999, the Richfield Housing and Redevelopment Authority (HRA) approved the use of eminent domain (condemnation) for the acquisition of certain properties on the east side of the 7600 block of Lyndale Avenue. This action came at the request of Richfield Senior Housing, the developer for that area. Since that time, the condemnation process has proceeded for several such parcels, including the property. located at 7621 Lyndale Avenue. The condemnation action for this property has concluded in a settlement to which the property owner, the developer and HRA legal counsel were parties. The value reached in the settlement for the leasehold interest held by Tandy (Radio Shack) 0116-7621 Lyndale was $75,000. The HRA has already deposited $30,000 with the courts for this condemnation action, so an additional $45,000 must now be paid for the property. III. BASIS OF RECOMMENDATION A. POLICY • Acquisition of this property through condemnation was approved on October 18, 1999. • The property owner, developer and HRA legal counsel have reached a value for the property through a settlement. B. CRITICAL ISSUES This action is needed to ratify actions already taken- by HRA legal counsel. C. FINANCIAL • The developer (Richfield Senior Housing) is financially responsible for reimbursing the HRA for costs incurred in the acquisition of this property. D. LEGAL • HRA legal counsel was a party to the settlement agreement for this property. IV. ALTERNATIVE RECOMMENDATION(S~ • N/A V. ATTACHMENTS • N/A VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • • J STAFF REPORT AGENDA ITEM # SD REPORT # S HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 REPORT PREPARED BY: LYNNETTE CHAMBERS, LEASED HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING & REDEVELOPMENT MANAGER NAME, TITLE ACTING DEPARTMENT DIRECTOR REVIEW: ~' ATU2E REVIEWED BY EXECUTIVE DIRECTOR: ~]/ ) ~ ~ lJ ..: / ITEM FOR HRA CONSIDERATION: Adjustment of payment standard for the Section 8 Program. I. RECOMMENDED ACTION: By Motion: Adopt the Department of Housing and Urban Development's proposed payment standards, making them effective February 1, 2001. III. BACKGROUND ~ The Section 8 program is administered in accordance with an administrative plan. In accordance with this plan and the Department of Housing and Urban Redevelopment (HUD) regulation, the voucher program provides financial assistance based on unit bedroom size. Clients pay a minimum of 30 percent of their income towards rent. The Housing .and Redevelopment Authority (HRA), through its contract with HUD, pays the remaining balance, up to a set rent amount called the "payment standard". . HUD regulations allow the Richfield HRA to increase the payment standard to 110% of the area Fair Market Rent (FMR). HUD normally determines the FMR on an annual basis. Due to the fact that the housing market is tight and rents have 0116voucher increased beyond normal projection, HUD has increased the FMR for the Twin City Metropolitan Area and other communities in the nation. The increased FMR allows • Richfield HRA the opportunity to raise the payment standards for 2, 3 and 4 bedroom units allowing Section 8 participants to choose from a larger selection of affordable housing. III. BASIS OF RECOMMENDATION HUD provides sufficient federal assistance to cover these adjustments in the payment standards. A. POLICY The HRA must approve increases in the payment standard for the Section 8 program. B. CRITICAL ISSUES Due to the low vacancy rate and increased demand, apartment rents are increasing. Without an increase in the payment standard, many Section 8 participants will be unable to find housing. • Section 8 participants will be able to choose from a larger selection of affordable housing. C. FINANCIAL An increase in the payment standard will decrease the rent burden for Section 8 participants. Increased federal assistance is provided to the HRA to cover these adjustments. D. LEGAL The contracts between HUD and the HRA allow these adjustments to occur. IV. ALTERNATIVE RECOMMENDATION(S~ Do not change the payment standard at this time. However HUD .guidelines suggest. an adjustment is needed. V. ATTACHMENTS ~ • Section 8 Payment Standards-(Attachment A) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • n • C ~. -~ 0 ..., U N 'd 'd ~-,+ a N U O OO 0 .-~ •U W "~ i. CCl "'~ G r..~ ~," C~ a "C 0 a a O N .~ V W • _ _.._ AGENDA ITEM # 5C REPORT # LF STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 STEVEN L. DEVICH, ADMINISTRATIVE REPORT PREPARED BY: SERVICES DIRECTOR NAME, TITLE STEVEN L. DEVICH, ADMINISTRATIVE REPORT PRESENTER:.. SERVICES DIRECTOR DEPARTMENT DIRECTOR REVIEW: ~ \ Je..~ \ p ,/ _' REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolution designating an official newspaper for 2001 for the Richfield Housing and Redevelopment Authority. I. RECOMMENDED ACTION: By Motion: Approve the resolution designating for 2001 the Richfield Sun-Current as the primary official newspaper and the Minneapolis .Star Tribune as the secondary official newspaper for the Richfield Housing and Redevelopment Authority. II. BACKGROUND ~ The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's and HRA's official newspaper for many years. Attached is a copy of a letter from Minnesota Sun Publications requesting that they be designated the official newspaper for the City of Richfield for 2001. The 2001 advertising rate structure for legal notices is as follows: 1 Column width $14.30 per inch $7.15 per subsequent inch 0116Newspaper There are 11 lines per inch. The 2000 rate was $15.50 per inch and $7.75 per subsequent inch. For 2001, the staff recommends that the Minneapolis Star Tribune be considered as a secondary official newspaper. Legal notices would be published in the Minneapolis Star Tribune only when publication in the Richfield Sun-Current cannot be accomplished within required legal deadlines. The 2001 advertising rate structure for legal notices in the Sunday and week day, metro and statewide, issues is $3.13 per line III. BASIS OF RECOMMENDATION I A. POLICY • The Sun-Current has expressed. an interest in continuing to serve as the official newspaper of the City and HRA. • The Sun-Current has served well as the official paper for many years. • The Sun-Current is delivered to nearly all residences in the City. B. CRITICAL ISSUES- The designation must be made at the first meeting of the new year. C. FINANCIAL The cost for the official publications is reasonable. D. LEGAL • A newspaper must be designated each year by the City for publication of all official and legal City and HRA business. IV. ALTERNATIVE RECOMMENDATION~S~ • Not make a designation and request the City Clerk's office to check into using another publication. V. ATTACHMENTS • Resolution Letter from Minnesota Sun Publications • Fax from Star Tribune VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • HRA RESOLUTION NO. RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2001 WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is designated the official legal newspaper for the Richfield Housing and Redevelopment Authority for 2001 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star Tribune is designated as the Richfield Housing and Redevelopment Authority's secondary official newspaper for 2001 Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 16th day of January, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary Dti.-~ ~ -c~~J~1 ~7 ~ l b -r ~_ December t a, 2000 ~~~s~~Y'~ City of Richfield City Council 6700 Portiand Avenue Richfield. MN 55423-2599 Dear C-ty Counc-1 Members: - . ~.,~ ~~ The Richfield Sun Current would like to be considered for designation as the legal newspaper for the City of Richfield fog she year 2001. New in 2000. afl published legal .notices were posted on our website (www.mnsun.COm) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. The rate structure for legals effective January 1, 2001 will be: t column width: $14.30 per inch for first insertion $7.15 per inch for subsequent insertions There are 11 lines per inch Two notarized affidavits on each of your publications will be provided with no additional Charge. The deadline for regular length notices is 2:00 pm the Wednesday prior to publication. E-mailing the legal notices is an efficient and accurate way of getting the notices to us. The a-mail address for the legal department is legals@mnsu-1pub.com. We still accept notices on disk, faxed or through the mail. If you require more information to make your decision, please contact me or Meridei Hedblom. our Legal RepresentatFVe, at 952-392-6880. Thank you for considering the Sun Current as the official newspaper for the City of Richfield in 2001. We appreciate the opportunity to serve the needs of your community. Sincere rank Chilinski President and Publisher 10917 V~-u.~ V1JEW Roan ~ Ensx Ptun~ ~+ MIDINE.SO?A 553 #952-889.0797 +~ Fauc: 9~'` 9~1-9588 TOTflL P.02 12/28/2000 11.:36 FAX 612 673 4884 STAR TRIBtNE CLS. ADV. C~J 0 O 1 • i ~~a r ~ .... -F~csr~Nrc~ Cov:R Slr~r ~~ ~~~~ ~. r r • t, ~ T •• 'J 425 Par~~a.~d aveaut FAX NUMBER: 16221 6T3-33g•~ Minnea~clis, drlianeseh 3S4S8-0002 PNONENUMSERti.- t622~ 613-TOa0 x-soaszrsz~ F3OELiL Et~'RFSS/A1R80RKE MAIL - tlSg IIp Code S54x5 PLEASE DELIVER T0: (O) a ~ g~'J I- 11 '~ q DELIVERY FROM: ~YI S . HUMBER 4F PAGES lNCIUDiNG C011FR SHEEP: C0~-1'~E'r~S: ~-~ ~ ~~~ 3 i~ ~~ ~~ ~~d s • AGENDA ITEM # REPORT # 5B REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: '" /~ -ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelopment for 2001, including the approval of collateral I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating .official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the nledaed collateral. III. BACKGROUND ~ N/A III. BASIS OF RECOMMENDATION A. POLICY • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. H RADepositories01162001 CHRIS REGIS, FINANCE MANAGER NAME, TITLE CHRIS REGIS, FINANCE MANAGER • Richfield Bank & Trust Company, pledging $1,000,000 of collateral, has fulfilled this requirement and should be considered as a depository for the HRA's vendor accounts and all savings deposits in excess of $100,000. • The HRA must also designate annually, certain savings and loan associations and banks as official depositories for investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of $100,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2001. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include Richfield Bank & Trust Co., Piper Jaffray Inc., Dain Rauscher, Wells Fargo Brokerage Services, Morgan Stanley Dean Witter, Miller, Johnson & Kuehn, Inc. and Miller & Schroeder Financial, Inc. B. CRITICAL ISSUES N/A C. FINANCIAL • N/A D. LEGAL • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. IV. ALTERNATIVE RECOMMENDATION~S~ • The HRA could solicit other financial institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. V. ATTACHMENTS • Resolution designating the Richfield Bank & Trust Company a depository of funds of the HRA of Richfield for the year 2001 and approving collateral. • Resolution designating certain savings and loan associations and banks as depositories for the investment of HRA funds in 2001. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2001. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None • HRA RESOLUTION NO. RESOLUTION DESIGNATING THE RICHFIELD BANK AND TRUST COMPANY A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2001 AND APPROVING COLLATERAL BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, the Richfield Bank and Trust Company be, and hereby is designated a depository of the funds of the Housing and Redevelopment of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at anytime exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all- time deposits, at or after the. end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; THOMAS E. HARMS, CHAIR SAMANTHA ORDUNO, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that there shall be a daily interest savings account. All withdrawals. from said account will be for transfers to the general checking account. BE IT FURTHER RESOLVED, that collateral in the amount of $1,000,000 in the form of a Bank Deposit Guaranty Bond, deposited for safekeeping at the Kansas Bankers Surety Company, is hereby approved. Passed by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th day of January, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary • HRA RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06, municipal funds may be deposited in any Savings and Loan Association or Bank which has its deposits insured by the Federal Savings and Loan Insurance Corporation (FSLIC) or the Federal. Deposit Insurance Corporation (FDIC); and WHEREAS, the amount of said deposits may not exceed the FSLIC/FDIC insurance covering such deposits which insurance amount is presently $.100,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED,. by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined. that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2001. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and. Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $100,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts for Public Unit Savings Certificates purchased by the City, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th day of January, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary HRA RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2001 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 -118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2001. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: Dain Rauscher, Inc. Miller, Johnson & Kuehn; Inc Wells Fargo Brokerage Services Morgan Stanley Dean Witter Piper, Jaffray, Inc. Miller & Schroeder Financial, Inc. 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated.. Such deposits maybe made and withdrawn from time to time. by the Treasurer or Finance Manager's judgment and as the .interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 16th day of January, 2001. Thomas E. Harms, Chair ATTEST: Michael Sandahl, Secretary s u AGENDA ITEM # SA REPORT # 2 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 • REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: CHERYL KRUMHOLZ, ADMIN. ASSISTANT NAME, TITLE SAMANTHA ORDUNO, EXECUTIVE DIRECTOR NAME; TITLE SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of designating Steven L. Devich, Administrative Services Director, as the Acting Executive Director of the HRA for 2001. I. RECOMMENDED ACTION: By Motion: Designate Steven L. Devich, Administrative Services Director, as the Acting Executive Director of the HRA for 2001. III. BACKGROUND On January 2, 2001, the City Council appointed the Administrative Services Director to serve as the Acting City Manager in the absence of the City Manager. Since the City Manager also serves as the Executive Director of the HRA, it is recommended that the Administrative Services Director, Steven L. Devich, be designated by the HRA as the Acting Executive Director of the HRA to serve in that capacity during the absence of the Executive Director. • 0116director.doc III. BASIS OF RECOMMENDATION A. POLICY • Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the official newspaper. • The Administrative Services Director has been designated as the Acting Executive Director in the past. • The Administrative Services Director serves as the Acting City Manager, filling other similar responsibilities for the City Manager in the Manager's absence. B. CRITICAL ISSUES • It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. C. FINANCIAL • N/A D. LEGAL • N/A/ IV. ALTERNATIVE RECOMMENDATION(S~ • Defer this designation to another HRA meeting. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. • • AGENDA ITEM # 1 REPORT # 1 °"~.~ STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 16, 2001 • REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASSISTANT NAME, TITLE REPORT PRESENTER: SAMANTHA ORDUNO, EXECUTIVE DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ~ ~ ,~~/~ ~ n ITEM FOR F~IRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority for 2001. L RECOMMENDED ACTION: By Motion: Elect officers for the Richfield Housing and Redevelopment Authority for 2001. II. BACKGROUND The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2000 were: Thomas Harms, Chair Joan Helmberger, Vice Chair Mike Sandahl, Secretary 0116officers.doc III. BASIS OF RECOMMENDATION A. POLICY • The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. • The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. B. CRITICAL ISSUES • The bylaws of the Richfield Housing and Redevelopment require that an election of officers for the HRA be .held at the annual meeting in January. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Do not hold the election. However, this would be in contradiction of the HRA bylaws. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • .None. n